Real estate crowdfunding is proving to be a booming enterprise as CrowdStreet, a US-based online marketplace for real estate investment, reports oversubscribing multi-million dollar raises in less than 30 days.
The crowdfunding platform matches high net worth individuals with real estate sponsors. A recent crowdfunding offer on the site delivered more than 100 new high net worth investors, revealed a report from the company.
As of July 2016, CrowdStreet posted more than $1.7 billion in commercial real estate projects via 60 offerings on its online marketplace with an additional 47 sponsors using its investor management solution Sponsor Direct to manage more than $400 million in investor funds directly from their websites and their investor networks.
Launched in 2014, CrowdStreet reported two consecutive record months in June and July 2016. The company also reported strong quarter-over-quarter growth in both total marketplace funding and the licensing of CrowdStreet’s white-label online fundraising and Sponsor Direct.
“CrowdStreet is unique in the commercial real estate investment space,” said CEO and co-founder Tore Steen.
“While our competitors are positioning themselves as online versions of institutional funding, we’re the only major provider delivering a comprehensive online funding and investor management solution.
“The CrowdStreet Platform extends beyond the fundraising of a deal to cultivating and growing lifetime value for the sponsor through building, managing and expanding ongoing investor relationships.”