Mogul Club, a Washington, D.C.-based startup, has made headlines by raising a significant $3.6m in a recent seed funding round.
The firm, established last year by two ex-Goldman Sachs real estate investors, is poised to make real estate investing more accessible to a broader audience.
The substantial investment was led by AY Ventures, with notable contributions from Tim Draper & Associates, Draper B1, InterVest, Draper Dragon, and Blizzard Fund, according to a report from TechCrunch.
Alongside these, several angel investors participated, including Rosie Rios, the 43rd Treasurer of the United States, and executives from prestigious firms such as Goldman Sachs, J.P. Morgan, and Carlyle.
Mogul Club distinguishes itself as a fractional real estate investment platform leveraging blockchain technology. This innovation, according to CEO and co-founder Alex Blackwood, enhances efficiency. Blackwood, together with co-founder Joey Gumataotao, brings to the table a wealth of experience from Goldman Sachs, providing them with a unique vantage point in selecting high-return and high-appreciation investment properties.
The startup’s mission is to redefine the archetype of a real estate mogul, making it an attainable status for many. Mogul Club ensures that each property listed on its platform undergoes rigorous diligence and underwriting comparable to institutional investors. This meticulous selection process results in only the top-tier properties being offered to investors.
Mogul Club plans to channel the newly acquired funds into the development of new features on their platform and aims to present $10m worth of single-family rental properties by the end of the year. Their business model includes a flat 3% fee for onboarding properties and a 2.5% fee on rental income, with the total fees remaining competitive thanks to negotiated wholesale discounts with property managers.
In a statement to TechCrunch, Mogul Club CEO Alex Blackwood said, “We are redefining who can be a real estate mogul and what that stereotype looks like.” This ethos is reflected in their offerings and the transparent process they maintain for their investors, promising more information than what was typically provided at Goldman Sachs’ Investment Committee meetings.
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