PeerStreet Comes Home to $60 Million in New Funds
PeerStreet, a real estate loan investment startup, confirmed an earlier report that it landed new funding.
The Manhattan based company raised $60 million in Series C funding, originally reported this morning in Forbes. Colchis Capital led the round, with supporting funding coming from World Innovation Lab, Andreessen Horowitz and Thomvest Ventures. PeerStreet also secured $4.25 billion in new capital commitments from institutions to purchase loans through their proprietary platform. The company says this will help them bolster their existing suite of short-term bridge loan products and expand its just launched 30 year buy to rent loan program.
This new funding round will help the company attain top talent and “further scale our two-sided marketplace-the first and largest of its kind for investing in real estate debt,” according to the company statement.
“2019 has been an incredible year of growth for PeerStreet, and this funding round will accelerate that growth,” said Brew Johnson, CEO and co-founder of PeerStreet, in the statement. “The injection of equity capital into our business via the Series C, combined with strong demand from loan buyers, means we will continue to provide value for lenders, end borrowers, and investors for years to come.”
“We’ve been a strategic partner of PeerStreet for years as an investor in the company and in loans on the marketplace. Leading this round was a natural next step for us,” added Ted Conrads, Colchis Capital’s co-founder and president. “We’re excited to be a part of their growth as they continue to innovate as the market leader.”
PeerStreet reviews both algorithmic-ally and using its in-house real estate and legal teams each investment opportunity it offers. Loans are then aggregated for institutional and accredited retail investors, who in turn provide PeerStreet-approved lenders with capital. The lenders than make loans to end borrowers who buy properties, upgrade them, then either sell them to homebuyers or make them rental properties.
According to PeerStreet’s co-founder and COO Brett Crosby, the company hopes to be an answer to the growing housing supply crisis in many parts of the U.S.
“I think our society is at a crossroads—there is a shortage of housing in many areas of the country and nearly 40 percent of existing homes were built before 1970. We can either build more homes and continue to take over green spaces, or we can up-cycle the existing aging and dilapidated housing stock,” Crosby said. “PeerStreet’s business model ultimately supports real estate entrepreneurs doing the latter, curing the capital constraints that have held them back and allowing them to reinvest in American communities.”