RealtyShares closes $20M funding round

  • Real estate crowdfunding offers developers an alternative to traditional financing.
  • Having raised an additional $20 million, RealtyShares is the latest real estate crowdfunder to close a big funding round.
  • New regulation means real estate crowdfunders may finally begin to crowdfund real estate investments from non-accredited investors.
  • Ionically, real estate crowdfunders are increasingly targeting institutional investors -- the opposite of the crowd -- and rolling out investment funds (REITs) that resemble the investment vehicle they sought to disrupt.

Real estate crowdfunding — online funding platforms that pool money from investors for the purchase of individual properties — has been gaining steam over the last few years, and that momentum isn’t showing any signs of abating.