If money talks, it’s saying that real estate crowdfunding platforms may be around to stay.
Patch of Land, which both pulls in cash from accredited investors in residential real estate deals and doles it out to approved buyers, raised $23.6 million in a Series A funding round this month.
A similar real estate crowdfunding site, RealtyMogul, which helps qualified investors buy shares in commercial and residential properties for as little as $5,000, raised $9 million in a Series A funding round last year.
So far, all of the more than $18 million Patch of Land has helped investors put into real estate has gone to residential properties, but the firm is also looking to fund small commercial properties, a spokeswoman for the firm told Inman.
“The real estate lending marketplace is quickly transforming the way investors and developers interact, and Patch of Land is at the forefront of this change,” said Neil Wolfson, president of SF Capital Group, the private investment firm that lead Patch of Land’s funding round, in a statement.
Patch of Land said it will use the cash from the round to “aggressively” increase its market share, invest in technology and data systems that power its marketplace, and hire real estate and tech pros.
Real estate crowdfunding is experiencing a renaissance fueled by new technology and changes in government regulation.