Technology raises $35M in latest bet on new financing method

Funding round highlights momentum of real estate crowdfunding

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Marking the latest vote of confidence in real estate crowdfunding, has raised an additional $35 million in funding. The real estate crowdfunder will use the funds to expand its geographic footprint and invest in technology that can help the firm assess the risk of different real estate investment opportunities. Real estate crowdfunding allows investors to buy slices of residential, commercial and industrial properties, or fund loans used to buy such properties. Among other real estate investor types, home flippers are tapping the funding platforms for cash to purchase and renovate properties, and then are selling those properties at a profit. For example, recently cobbled together $750,000 from investors and lent the money to a home flipper. The home flipper will use the cash to finish off renovations to a property in Brooklyn, New York, and pay back the loan over time, resulting in returns for investors (if all goe...