ATLANTA, July 31, 2019 /PRNewswire/ -- GROUNDFLOOR, an investing and lending platform that allows anyone to participate in real estate investment loans, is today announcing its Q2 results. Once again, GROUNDFLOOR more than doubled year-over-year revenue, while also closing a $3 million equity raise from 1,580 new and existing investors.
This new capital brings the company's total fundraising to $18.3 million. Consistent with GROUNDFLOOR's mission of leveling the playing field in private capital markets, the company met its goal of achieving 20% ownership by individual investors, 3,160 of whom now own shares. To date, GROUNDFLOOR remains the only company qualified by the U.S. Securities & Exchange Commission to offer direct real estate based debt investments to non-accredited investors and accredited investors alike.
"Our customers are showing the world how open private capital markets work in very practical terms," said GROUNDFLOOR co-founder and CEO Brian Dally. "We're seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we're proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road."
Additional Q2 metrics for GROUNDFLOOR include:
- 139% year-over-year increase in non-GAAP revenue, to $1.6 million for the second quarter and $2.6 million for the first half of 2019
- 160% year-over-year increase in loans closed, bringing the company's total loans originated to more than 1,000
- $22.4MM in retail investment volume
- $13.2 MM in principal and interest repaid to investors, who realized an average return of 10.54% net of losses
- 65,000 registered users
Founded in 2013 by Brian Dally and Nick Bhargava, GROUNDFLOOR remains the only product offering a fully customizable real estate debt portfolio for short-term, high-yield returns. For real estate entrepreneurs, GROUNDFLOOR offers borrower friendly loan terms like a deferred payment option to give developers more control over their cash flow. While anyone in the country can invest in GROUNDFLOOR with only $10, the company focuses its lending in 30 states.