The San Francisco-based company’s platform helps pair would-be real estate investors with friends or strangers who want to co-own property.

Fractional, a startup that helps pair users who want to co-own real estate properties with other people, has raised $5.5 million in seed funding as it looks to expand, it was announced Monday.

The funding places the San Francisco-based company’s latest valuation at $30 million, according to TechCrunch.

CRV led the funding round alongside Y Combinator, the actor Will Smith, Brooklyn Nets forward Kevin Durant, Goodwater Capital, Unusual Ventures, Global Founders Capital, On Deck, Contrary Capital and Soma Capital, according to TechCrunch.

Fractional’s model guides would-be real estate investors through the underwriting process, provides legal and financial software to inform the purchase, and then partners with property-management companies to reduce the strain on investors.

Customers can use Fractional to co-own properties with people they already know, or they can let the platform pair them with other investors.

Company founders Stella Han and Carlos Treviño got their start together at Affirm, a financial tech company that helps customers make purchases and splits the payments out into installments — sometimes without interest.

Their experience with the model helped influence the way Fractional assists with the underwriting process, according to the TechCrunch report. Han and Treviño were also prompted to offer legal resources to customers, as their own experience with an investment property in Mexico involved hefty legal fees to understand the process.

In its beta version, Fractional has attracted more than 400 users. These investors have teamed up to purchase 95 properties through the platform.

Packy McCormick, one of the earliest investors in the company’s business operations, said the Fractional model helps make a traditionally involved, low-margin activity into something scalable and profitable.

“What’s been most impressive to me is that in an industry that’s been very asset heavy … they’ve taken a pure software approach that doesn’t compromise the ease of the process and still gives people the hands-on feel of owning a house,” McCormick told TechCrunch.

Email Daniel Houston

| websites
Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription