California-based fractional real estate investing platform Fintor closed a $2.5m seed funding round.
Backers included 500 Startups, Hustle Fund, Graphene Ventures, Manny Khoshbin, Mana Ventures, Cindy Bi, Skyler Fernandes, VU Venture Partners, Minal Hasan, Andrew Zalasin, Alluxo CEO and founder Safa Mahzari, SquareFoot CEO and founder Jonathan Wasserstrum and Teachable CEO and founder Ankur Nagpal.
The company intends to use the funds to continue to expand operations.
Developed by serial co-founders Farshad Yousefi and Masoud Jalali, Fintor fractionalises houses and other residential property allowing US citizens to access investment opportunities in the real estate asset class starting with as little as $5.
The technology platform would allow each property to have its own offering marketed through the platform, dividing the property into shares, setting a share price and allowing consumers to invest. Ultimately, the platform intends to enable regular trading opportunities for investors through trading windows, creating liquidity for holders while protecting against volatility.
Commenting on the firm’s plans, Yousefi said, “At Fintor we hope to foster the next generation of real estate investors so that you no longer need hundreds of thousands of dollars and industry connections to benefit from owning real estate.
“We’re building Fintor to open the real estate investing asset class to millions of Millennials and Gen Z’ers who otherwise wouldn’t have a chance, and we’re making it easy to get started in real estate investing with $5 and a smartphone.”
Given how homeownership among American adults is at historical lows because of high upfront costs and liquidity, Fintor aims to offer people properties in shares for investors to trade.
“We have a vision that will change how people invest in real estate forever,” Yousefi added.
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