GROUNDFLOOR raises $4.2M under Regulation A

GROUNDFLOOR, a direct real estate investment platform open to all investors and real estate entrepreneurs, today announced  its online public offering raised an additional $4.2 million in 2018. This additional financing brings its total for the 2017-18 campaign to $6.2 million from 2,304 investors and the company’s total fundraising to $13.8M.
The company is also experiencing significant growth, achieving a 64 per cent increase in year-over-year revenue. This month, GROUNDFLOOR and its 45 employees will relocate to a 7,746 square foot office in Atlanta’s Bank of America Plaza.

During the company shareholder call with new investors last month, co-founder and CEO Brian Dally outlined additional company momentum:

  • For the 12 months ending June 30 the company reported GAAP revenue of $1,997,000;
  • There are more than 50,000 registered users on GROUNDFLOOR after 10,000-plus registered within the last 12 months (98 per cent of GROUNDFLOOR’s investors are non-accredited);
  • Investors have funded more than $75 million in GROUNDFLOOR real estate projects and the company has self-originated more than 550 loans; and
  • The average annualized rate-of-return realized on investments made in GROUNDFLOOR loans since inception is 11.39 per cent.

“We launched GROUNDFLOOR five years ago to level the playing field in capital markets for the benefit of individual investors and independent real estate entrepreneurs,” Mr. Dally said. “This new round of operating capital is already accelerating our growth by enabling us to continue reaching more borrowers and broadening investors’ opportunities to diversify.”

Founded in 2013 by Mr. Dally and Nick Bhargava, GROUNDFLOOR opens private capital markets to a broader base of both investors and real estate entrepreneurs. GROUNDFLOOR was the first company qualified by the SEC to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. For real estate entrepreneurs, GROUNDFLOOR currently serves the residential fix-and-flip market, offering borrower friendly loan terms like a deferred payment option to give developers more control over their cash flow.