Groundfloor, which aims to help people build wealth through real estate, has closed a $118m funding round.
Medipower has initially deployed $5.8m into the company but will inject a further $100m through Groundfloor’s investment platform. Next year, it plans to deploy a further $220m into the platform. As part of the deal, Medipower chairman Yair Goldfinger will join Groundfloor’s board.
The fresh investment was also backed by retail investors, with $7.2m coming from 3,600 individuals through the SeedInvest platform and $5m in convertible notes from 86 backers on Groundfloor’s platform.
Proceeds from the round will help Groundfloor scale its operations, boost customer acquisition efforts and increase product development. The company is also looking to hire 50 new employees this year, which would nearly double its team.
Other plans for 2022 include rolling out its second mobile app, expanding into dedicated markets and building a footprint in Jacksonville, Florida.
Groundfloor, headquartered in Atlanta, offers short-term, high-yield real estate debt investments to the public. Users can get started from as little as $10 and build a portfolio of debt investments based on personal risk/reward profiles.
As part of its strategic partnership, Medipower will participate in Groundfloor’s real estate loans alongside retail investors. Also, to ensure equality on the platform, Medipower has a fixed maximum amount it can deploy into one loan.
Groundfloor co-founder and CEO Brian Dally said, “This is an important moment for Groundfloor’s loyal and rapidly growing base of retail investors and the entrepreneurs whose real estate projects they finance.
“Retail investors deserve their share of the same pie on which hedge funds, private equity, and all other financially privileged players have been enriched in the modern Wall Street-oriented era. This new strategic relationship supports our mission to deliver that and is purposefully structured to be consistent with our vision for a level playing field in saving and investing.”
The company previously raised $3m in a crowdfunding campaign back in 2019.
Copyright © 2022 FinTech Global
