PeerStreet, which enables investments into real estate-backed loans, has collected $60m for its Series C round.
Colchis Capital led the round with a consortium of institutional investors. Existing backers of PeerStreet including Andreessen Horowitz, World Innovation Lab, and Thomvest Ventures also contributed.
Having closed the round, the company will hire more talent and scale its two-sided marketplace.
Alongside the Series C, the company has raised $4.25bn in new capital commitments from institutions to purchase loans through its platform. These commitments will bolster PeerStreet’s suite of short-term bridge loan products, it claims.
PeerStreet is a real estate investing marketplace which empowers individuals to create their own portfolio of property investments. A user simply selects custom parameters and the platform will automatically select loans to back, building a diverse portfolio.
Investment opportunities are all reviewed by its algorithms and a manual expert team, they will then be funded by capital from institutional and retail investors. Borrowers can use the capital to buy properties, improve them, and either sell them to homebuyers or rent them out.
PeerStreet’s COO and co-founder Brett Crosby said, “I think our society is at a crossroads—there is a shortage of housing in many areas of the country and nearly 40 percent of existing homes were built before 1970. We can either build more homes and continue to take over green spaces, or we can up-cycle the existing aging and dilapidated housing stock.
“PeerStreet’s business model ultimately supports real estate entrepreneurs doing the latter, curing the capital constraints that have held them back and allowing them to reinvest in American communities.”
Last year, the FinTech raised a $29.5m Series B round from backers including World Innovation Lab, Andreessen Horowitz, Thomvest, Colchis Capital, and Felicis Ventures, among others.
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