Groundfloor, An Investing And Lending Platform, Raises $3M

Groundfloor, an investing and lending platform that offers anyone exposure to real estate investment loans, on Wednesday confirmed a new $3 million equity raise.

What Happened

Groundfloor said its second-quarter revenue rose 139% year-over-year to $1.6 million, which brings its total revenue for the first half of 2019 to $2.6 million. The company also realized a 160% year-over-year increase in loans closed which brings its total loans originated to more than 1,000.

The company noted $22.4 million in retail investment volume and $13.2 million in principal and interest repaid to investors. In fact, investors realized an average return of 10.54% net of losses.

In conjunction with the release of second-quarter metrics, the company said it raised $3 million from 1,580 new and existing investors. The raise brings its total fundraising to $18.3 million.

Why It's Important

Groundfloor's core mission of leveling the playing field in private capital markets is consistent with its own operations. The company achieved its objective of achieving 20% ownership by individual investors which now totals 3,160.

"Our customers are showing the world how open private capital markets work in very practical terms," Groundfloor co-founder and CEO Brian Dally said in the press release.

"We're seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we're proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road."

Related Links:

From The Ground Floor To GROUNDFLOOR—How Brian Dally Discovered He Could Be A Founder

Real Estate Investment Platform Groundfloor Raises $4.2M