San Francisco-based marketplace for real estate investing -- RealtyShares -- has raised a whopping $28 million in Series C funding from a variety of investors.
The funding round was led by Cross Creek Advisors, Danhua Capital, Barry Sternlicht (Founder of Starwood Capital and Starwood Resorts) and Bow Capital, along with prior investors Union Square Ventures, General Catalyst Partners, and Menlo Ventures.
Over the last six months, RealtyShares has aggressively assembled the infrastructure to transform the commercial financing market, welcoming Edward Forst (former CEO of Cushman and Wakefield) as a new board member, and Keri Findley (former partner at Third Point) and Joseph Azelby (senior partner at Apollo and former CEO of JP Morgan’s Global Real Assets Group) as advisors.
The purchase of Acquire Real Estate, an innovative rival that has set a bar for product development within the industry, and a partnership with leading residential lender Lima One Capital has set the stage for RealtyShares to help shift the way real estate is investing is handled in both the online and offline worlds.
In a market space involving a multitude of players, RealtyShares has emerged as one of the industry's most diverse real estate investment platform, deploying $500 million across more than 1,000 real estate opportunities in 39 states, as of this summer. Fueled by more than 120,000 registered users and a growing list of institutional partners, the company has quickly established itself as an industry leader. Now, RealtyShares is bringing its technical excellence to bear on scaling full capital stack commercial solutions, with over $242 million deployed across more than 120 commercial debt and equity projects in the last year alone.
The company's founder and CEO Nav Athwal says the current series of investors will help establish the business as a player that embraces technology.
“In a few short years we’ve developed a thriving marketplace, giving developers a fast and flexible capital source, while offering individual and institutional investors unprecedented access to high quality investments,” he said.
“Middle-market commercial real estate comprises the majority of commercial real estate transactions, but it’s one of the last frontiers to be disrupted by technology. The new partners we’re bringing on in this round have significant experience transforming old industries, and can help us deepen our focus on the severely underserved commercial financing market.”
This investment brings the pioneering startup’s total capital raised to-date to $60 million and adds (among others) four particularly prominent new investors.