Real Estate Fin-Tech Startup Crowdstreet Raises $12 Million

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Crowdstreet announced it landed more funding to boost its fin-tech operations.

The company completed its $12 million Series C funding round, provided by existing VC partners Grotech Ventures, Seven Peaks Ventures, Rally Ventures, and Green Visor Capital, along with several individual investors and commercial real estate sponsors. This latest round brings its total funding to $25 million since its launch in 2013.

In the past, CrowdStreet had a network of investors who requested to invest in the company. This time, they took a different tact.

“We used our own technology to run this process giving some of the most active members of our community of investors a chance to invest in the company itself,” said Tore Steen, CEO of CrowdStreet in a blog post. “Given how capital-efficient our business is, it wasn’t imperative for us to raise money. However, the rapid acceleration we had in 2019 has presented additional opportunities that we can capitalize on with this new funding. We pride ourselves in democratizing access to commercial real estate investing, so we wanted to take it one step further and provide individual investors the opportunity to invest in a round that traditionally would have gone entirely to VCs. We are extremely happy with the outcome and we’re excited to partner even more closely with the people who have helped make the CrowdStreet Marketplace such a success.”

The Portland, Oregon based startup allows real estate developers and operators to accelerate their fundraising processes while achieving enhanced visibility and control over every aspect of investor relations and lifecycle management. Sponsors can use CrowdStreet’s Marketplace platform to gain instant access to a national audience of accredited investors.

CrowdStreet says it is on schedule to raise over $500 million in real estate investment capital through its Marketplace for 2019 alone, more in investment volume than the company received in its first five years of operation alone. It has seen more than $80 million in cumulative distributions to thousands of investors in nearly every U.S. state since it launched.