Commercial property investment marketplace and software developer, CrowdStreet has ended a Series B funding round with $8 million to finance its next stage of growth. CrowdStreet uses its software technology to transform the US commercial and multi-family real estate industry through its online fundraising, investing, and investment management platform.
The financing was led by Grotech Ventures, with continued participation from existing investors including Rally Ventures, Seven Peaks Ventures, and Green Visor Capital, and also includes financing from strategic investor Noam Bardin, CEO of Waze. Lawson DeVries, a general partner of Grotech Ventures, has joined CrowdStreet’s board of directors.
CrowdStreet helps real estate developers and operators raise capital, acquire new investors and manage their portfolios and offerings online while helping high-net-worth investors build wealth through online real estate investing.
“CrowdStreet is growing extremely fast and has proved to be very capital efficient as they’ve proven out the market and their business strategy,” DeVries said. “This round of capital allows the company to continue to build out their industry-leading fundraising and investment management platform while also becoming the go-to marketplace for institutional-quality investment opportunities for high-net-worth investors.”
“CrowdStreet is fundamentally changing the way people invest in commercial real estate,” said Tore Steen, CrowdStreet CEO. “Previously, investors and sponsors could not transact with each other, but CrowdStreet, with our software and marketplace, has changed that. Hundreds of sponsors and thousands of investors now use the CrowdStreet platform to raise capital and invest in real estate to build wealth.”
Steen added: “Sponsors increasingly recognize that moving their fundraising online streamlines operations, reduces capital costs and brings them more investors, and high-net-worth investors increasingly recognize that they can build wealth by investing in commercial real estate online through CrowdStreet. Now, with more repeat investors and sponsors than ever, we’re realizing the network effect, which will catapult the company to the next level supported by the financing we’re announcing today.”
Profits from this recent Series B round will go towards the development of new products and services that will meet demands by investors and to allow for a larger multitude of high-quality alternative investment vehicles. CrowdStreet will also this capital to allow for continued service to CrowdStret customers, giving them the best experience possible and to grow the company’s marketing and sales that will give CrowdStreet new sponsors and investors for real estate projects in the future.
Edited by V. Haviland
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