SAN FRANCISCO—Real estate investment platform RealtyShares continues to shake up the real estate industry, not only in its ability to raise capital but in its way of thinking. Most recently, the platform raised $28 million in Series C financing from Cross Creek Advisors, Danhua Capital, Barry Sternlicht and Bow Capital, along with prior investors Union Square Ventures, General Catalyst Partners and Menlo Ventures. Its total venture financing is $60 million to date.
In a market space involving a multitude of players, RealtyShares has emerged as one of the industry's most diverse real estate investment platform, deploying $500 million across more than 1,000 real estate opportunities in 39 states as of this summer. Fueled by more than 120,000 registered users and a growing list of institutional partners, RealtyShares is bringing its technology to bear on scaling full capital stack commercial solutions, with more than $242 million deployed across more than 120 commercial debt and equity projects in the last year alone. This investment brings the pioneering startup's total capital raised to-date to $60 million and adds (among others) four new investors:
Cross Creek Advisors has more than $525 million under management with investments including Angie's List, DocuSign, Lifelock, HubSpot, Ticketfly and Care.com.
Barry Sternlicht, chairman and CEO of Starwood Capital Group, a private investment firm focused on global real estate, hotel management, oil and gas, and energy infrastructure.
Danhua Capital, a Chinese venture capital fund that invests in growth stage companies and disruptive technology, with investments in Optimizely, Chariot, Airware and limited partners.
Bow Capital, the venture arm of the Sacramento Kings and technology visionary Vivek Ranadivé, funding technology companies that advance society.
RealtyShares has also found a distinct need in the market in the form of middle-market commercial real estate.
“In a few short years we've developed a thriving marketplace, giving developers a fast and flexible capital source, while offering individual and institutional investors unprecedented access to high-quality investments,” said RealtyShares founder and CEO Nav Athwal. “Middle-market commercial real estate comprises the majority of commercial real estate transactions, but it's one of the last frontiers to be disrupted by technology. The new partners we're bringing on in this round have significant experience transforming old industries, and can help us deepen our focus on the severely underserved commercial financing market.”
Bill Lanting, VP of commercial debt for RealtyShares, says there hasn't been much disruption across commercial real estate as a whole, especially when compared to personal lending or even residential lending. The middle market poses the best opportunity for technology to play a role because there is a great need for efficiency, he says.
“It's easy to introduce an app to hail a car or rent a hotel room and receive a billion dollar valuation because, for the users, the stakes are low. When you're working with people's money or securing loans for significant commercial projects, there is a higher level of credibility and acceptance required,” Lanting tells GlobeSt.com. “There are lots and lots of people working on this problem, both at RealtyShares and throughout the industry. The difference is, many operate in the old fashioned way and are only trying to find ways to integrate technology into the traditional model to secure their future. We have a fresh perspective; building a viable commercial marketplace from scratch ($242 million deployed for commercial deals in just the last year). We see technology as the tool to creating a new model that opens up access to capital for all, not just preserving the old one.”
For him, it's developing the truest and complete vision for the future rather than preserving the traditional models is what matters most, GlobeSt.com learns.
During the last six months, RealtyShares has assembled the infrastructure to transform the commercial financing market, welcoming Edward Forst as a new board member, and Keri Findley and Joseph Azelby as advisors. The purchase of Acquire Real Estate, an innovative rival that has set a bar for product development within the industry, and a partnership with leading residential lender Lima One Capital has set the stage for RealtyShares to help permanently shift the way real estate is investing in both the online and offline worlds.
SAN FRANCISCO—Real estate investment platform RealtyShares continues to shake up the real estate industry, not only in its ability to raise capital but in its way of thinking. Most recently, the platform raised $28 million in Series C financing from Cross Creek Advisors, Danhua Capital, Barry Sternlicht and Bow Capital, along with prior investors Union Square Ventures, General Catalyst Partners and Menlo Ventures. Its total venture financing is $60 million to date.
In a market space involving a multitude of players, RealtyShares has emerged as one of the industry's most diverse real estate investment platform, deploying $500 million across more than 1,000 real estate opportunities in 39 states as of this summer. Fueled by more than 120,000 registered users and a growing list of institutional partners, RealtyShares is bringing its technology to bear on scaling full capital stack commercial solutions, with more than $242 million deployed across more than 120 commercial debt and equity projects in the last year alone. This investment brings the pioneering startup's total capital raised to-date to $60 million and adds (among others) four new investors:
Cross Creek Advisors has more than $525 million under management with investments including Angie's List, DocuSign, Lifelock, HubSpot, Ticketfly and Care.com.
Barry Sternlicht, chairman and CEO of Starwood Capital Group, a private investment firm focused on global real estate, hotel management, oil and gas, and energy infrastructure.
Danhua Capital, a Chinese venture capital fund that invests in growth stage companies and disruptive technology, with investments in Optimizely, Chariot, Airware and limited partners.
Bow Capital, the venture arm of the Sacramento Kings and technology visionary Vivek Ranadivé, funding technology companies that advance society.
RealtyShares has also found a distinct need in the market in the form of middle-market commercial real estate.
“In a few short years we've developed a thriving marketplace, giving developers a fast and flexible capital source, while offering individual and institutional investors unprecedented access to high-quality investments,” said RealtyShares founder and CEO Nav Athwal. “Middle-market commercial real estate comprises the majority of commercial real estate transactions, but it's one of the last frontiers to be disrupted by technology. The new partners we're bringing on in this round have significant experience transforming old industries, and can help us deepen our focus on the severely underserved commercial financing market.”
Bill Lanting, VP of commercial debt for RealtyShares, says there hasn't been much disruption across commercial real estate as a whole, especially when compared to personal lending or even residential lending. The middle market poses the best opportunity for technology to play a role because there is a great need for efficiency, he says.
“It's easy to introduce an app to hail a car or rent a hotel room and receive a billion dollar valuation because, for the users, the stakes are low. When you're working with people's money or securing loans for significant commercial projects, there is a higher level of credibility and acceptance required,” Lanting tells GlobeSt.com. “There are lots and lots of people working on this problem, both at RealtyShares and throughout the industry. The difference is, many operate in the old fashioned way and are only trying to find ways to integrate technology into the traditional model to secure their future. We have a fresh perspective; building a viable commercial marketplace from scratch ($242 million deployed for commercial deals in just the last year). We see technology as the tool to creating a new model that opens up access to capital for all, not just preserving the old one.”
For him, it's developing the truest and complete vision for the future rather than preserving the traditional models is what matters most, GlobeSt.com learns.
During the last six months, RealtyShares has assembled the infrastructure to transform the commercial financing market, welcoming Edward Forst as a new board member, and Keri Findley and Joseph Azelby as advisors. The purchase of Acquire Real Estate, an innovative rival that has set a bar for product development within the industry, and a partnership with leading residential lender Lima One Capital has set the stage for RealtyShares to help permanently shift the way real estate is investing in both the online and offline worlds.
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