Silicon Valley venture capital firm Andreessen Horowitz leads a group investing $15 million into real estate marketplace lender PeerStreet.
They were joined by the Kaiser Family Foundation, Rembrandt Venture Partners, Montage Ventures and additional undisclosed participants.
In a release PeerStreet cofounder and CEO Brew Johnson said the funding will help build out the investment platform.
Andreessen Horowitz general partner Alex Rampell assumes a seat on PeerStreet’s board.
“PeerStreet is one of the fastest growing marketplace lenders we’ve seen, scaling to $165 million in originated loans in over a year, with great returns against a secured asset,” Mr. Rampell said. “They have a unique distribution model that allows them to leverage existing lending networks to lower loss rates and grow without direct marketing.”
Since its October 2015 launch PeerStreet has onboarded thousands of investors, funded more than $165 million in loan investments and returned more than $50 million to investors with no losses.
“This (investment) is another strong signal to our customers, partners and lenders that our business is on the right trajectory to fulfill our mission of connecting investors more directly with loans,” PeerStreet cofounder and COO Brett Crosby said. “Our approach benefits the entire ecosystem by providing more transparent access and control to mortgage finance.”
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