GROUNDFLOOR Raises $3 Million During Latest Public Offering
GROUNDFLOOR, an investing and lending platform that allows anyone to participate in real estate investment loans, is today announcing its Q2 results. Once again, GROUNDFLOOR more than doubled year-over-year revenue, while also closing a $3 million equity raise from 1,580 new and existing investors.
This new capital brings the company’s total fundraising to $18.3 million. Consistent with GROUNDFLOOR’s mission of leveling the playing field in private capital markets, the company met its goal of achieving 20% ownership by individual investors, 3,160 of whom now own shares. To date, GROUNDFLOOR remains the only company qualified by the U.S. Securities & Exchange Commission to offer direct real estate based debt investments to non-accredited investors and accredited investors alike.
“Our customers are showing the world how open private capital markets work in very practical terms,” said GROUNDFLOOR co-founder and CEO Brian Dally. “We’re seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we’re proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road.”
Additional Q2 metrics for GROUNDFLOOR include:
- 139% year-over-year increase in non-GAAP revenue, to $1.6 million for the second quarter and $2.6 million for the first half of 2019
- 160% year-over-year increase in loans closed, bringing the company’s total loans originated to more than 1,000
- $22.4MM in retail investment volume
- $13.2 MM in principal and interest repaid to investors, who realized an average return of 10.54% net of losses
- 65,000 registered users
Founded in 2013 by Brian Dally and Nick Bhargava, GROUNDFLOOR remains the only product offering a fully customizable real estate debt portfolio for short-term, high-yield returns. For real estate entrepreneurs, GROUNDFLOOR offers borrower friendly loan terms like a deferred payment option to give developers more control over their cash flow. While anyone in the country can invest in GROUNDFLOOR with only $10, the company focuses its lending in 30 states.