Venture Capital Investments: Making Equity Real Estate Crowdfunding Credible and Sustainable

Venture Capital funding continues to play major role in Real Estate Crowdfunding market. This process is facilitated by the development of new real estate search websites which began about one decade ago. These new websites are dedicated to helping the average consumer find homes and other real estate properties available for sale in the real estate markets.

 Many investors and real estate venture capital firms have seen a great investment opportunity through the Real Estate Crowdfunding process to enable them take advantage of the unfolding opportunities to make some money through their investments.

Evolution of Real Estate Crowdfunding technique

The real estate crowdfunding method is a process through which venture capitalists raise money for real estate companies. The process enables investors to earn and receive cash flow from their invested assets. The Real estate crowdfunding method benefits sponsors as well as investors.

According to Dow Jones VentureSource, during the first quarter of 2014, Venture Capital companies raised and funneled $118.5 million into 11 real-estate startups. Such level of Capital surpassed the amount of capital raised since 2000. Such exponential growth tells in itself, the story of the rapid growth and importance of the relatively new real estate crowdfunding technique to the overall U. S. real-estate market.

Recent Crowdfunding Notable Deals

SmartZip Analytics a predictive analytics company which assists to project which real estate home owners who may likely sell their properties has raised over $12 million from the Crest Capital Ventures and Claremont Creek ventures.

In August 2014, March Capital Partners and Triangle Creek Partners raised $6 million for Agent Ace Inc., a company which employs home sales data to match sellers and buyers with the best available real estate agents for the type of home they own.

Recent real-estate crowdfunding deals include:

  • $10 million raised by Realty Shares
  • Real Crowd raised $2 million for Angel Co.  
  • Patch of Land raised $23 million venture Capital funding
  • In September last year Fundrise raised another $3.6 million bring its total raised funds to $38 million, making Fundrise the heaviest Venture-backed crowdfunding real-estate start-up company

Sources of Crowdfunding money for Venture Capital

 Funding for real estate crowdfunding comes through a variety of sources within the U.S. investor community and their foreign counterparts. These may include:

  • Investor Pools
  • Accredited investors with about $5,000 as minimal investment
  • Institutional Investors
  • Family Offices
  • REP investors-large scale Commercial Real Estate investments
  • Hedge Funds and Alternative investment seekers-Hedge funds have been increasingly drawn into the real estate market sector. Hedge Funds use a variety of hedging strategies to seek returns for their investors which may also include qualified investors, or investor Pools.

Real estate crowdfunding methods will definitely grow in popularity as an alternative method of raising venture real estate capital as well as an important investment portfolio for investors seeking to put their money into the real estate market. This method will be around for as long as there is a real estate market, and has become part of the U.S. real estate establishment. Investors can discover, rate, and review Crowdfunding platforms and investments at CrowdDD.


Share with Email
 
 
 
Top 5 by Overall Rating
At Watermark Partners Real Estate, we raise and actively manage funds for the acquisition, improvement and management of
Atlas was founded in 2009 by managing principals Arvind Chary and Alex Foster. The two founders bring over 25 years of i
ApexOne Investment Partners is a privately held real estate investment firm and fund manager. Our platform was created t
MLG Capital is a Real Estate Investment Manager that utilizes the skills and expertise of the MLG Family of Companies. S
Avistone is a real estate investment management firm with expertise in the acquisition and operation of multi?tenant ind
Website - CrowdStreet Phone - 888 432-7693 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed CrowdStreet allows accredited investors to purchase real estate investments through their platform, which is essent
Website - Real Crowd Fees - NONE Phone - 800-286-1602 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed Real Crowd is a private, secure, and simple-to-use online platform for accredited investors to assess, r
URL - Fund That Flip Fees - 2% to 4% loan points as an origination fee deducted from loan funds at loan closing, plus 1% to 3% interest rate spread taken from loan repayments over the course of the loan. There is no cost for investors to sign up and
Website - EquityMultiple.com Fees - .5% annual asset management fee on equity + 10% carry Phone - 646)-844-9943 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed EQUITYMULTIPLE is the only online investi
Website - SBRE Funds Fees- None for Investors Phone - 503-906-9100 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed Cut out the fees from the middlemen and control your own future by investing