RealtyShares operates a platform that pools together debt and equity investments for apartments, office buildings, and retail centers. The San Francisco‑based company was founded in 2013 and says it has over 120,000 users and has deployed more than $500 million across over 1,000 properties. Typical transactions on the platform range from $2 million to $50 million. RealtyShares has shifted focus toward institutional investors and accredited high‑net‑worth individuals rather than general crowdfunding. The company generates revenue from placement fees at investment and ongoing asset management fees, which it says are lower than industry averages. It plans to use new funding to improve technology and brand and hire staff in data science, engineering, commercial real estate, originations, and underwriting. RealtyShares operates an online marketplace through which individual and institutional investors can purchase shares in pre-vetted residential and commercial properties with minimum investments as low as $5,000. The platform offers fix-and-flip loans, preferred equity and other mezzanine financing products, joint venture equity, and commercial loans alongside institutional capital partners. Investors can browse opportunities, perform due diligence, invest online and monitor performance via a 24/7 dashboard. Led by CEO Nav Athwal, the company offers its equity securities through North Capital Private Securities Corporation, member FINRA/SIPC. RealtyShares intends to use new funding to expand marketing, hiring and product development. To date the platform has raised over $130M for more than 290 investments across over 1,600 properties. RealtyShares operates an online marketplace that underwrites and lists residential and commercial real estate investments for accredited investors, allowing minimum investments of about $5,000. The company vets opportunities and claims projects on its platform are often fully funded within four days. Since launch it has funded hundreds of properties totaling more than $300 million and has returned roughly $2 million of investor capital. Investor returns vary by deal type and risk profile and can range from about 8 percent to 20 percent. RealtyShares is experiencing rapid growth in deal flow and demand—applications rose to about 1,000 per month from roughly 300 at the end of 2014, and March saw investors fund roughly 15 deals totaling about $7 million. The company plans to use new capital to hire more underwriters and automate internal processes to speed vetting while maintaining project quality. RealtyShares launched about a year before the article as a platform that crowdsources capital for real estate projects, allowing individual investors to commit as little as $5,000. It lists projects ranging from roughly $100,000 to the tens of millions and covers single-family, multi-family and commercial assets. The platform funds roughly 10 to 20 projects per month and reports an average of four days to fully fund each investment. Over the past year the company amassed about $300 million in real estate property value across more than 200 properties in 59 cities and 17 states. Founder and CEO Nav Athwal says average investor returns have ranged from roughly 8 percent to 29 percent depending on project type. RealtyShares is rolling out market-specific products focused on Seattle, Dallas, Austin, Miami and Chicago to better match local developers with local investors.

Total raised

$60M

Funding rounds

4

Latest round

Series C

Latest activity

Sep 2017