ATLANTA, Sept. 20, 2018 /PRNewswire/ -- GROUNDFLOOR, the only direct real estate investment platform that is open to all investors and real estate entrepreneurs, today announced that it has succeeded in its online public offering, raising an additional $4.2 million in 2018. This additional financing brings its total for the 2017-18 campaign to $6.2 million1 from 2,304 investors and the company's total fundraising to $13.8M. The company is also experiencing significant growth, achieving a 64 percent increase in year-over-year revenue.2 This month, GROUNDFLOOR and its now 45 employees will relocate to a 7,746 square foot office in Atlanta's Bank of America Plaza.
During the company shareholder call with its new investors last month, co-founder and CEO Brian Dally outlined additional company momentum:
- For the twelve months ending June 30, 2018, the company reported GAAP revenue of $1,997,000
- There are more than 50,000 registered users on GROUNDFLOOR with over 10,000 registering within the last 12 months; overall, 98 percent of GROUNDFLOOR's investors are non-accredited
- To date, investors have funded more than $75MM in GROUNDFLOOR real estate projects and the company has self-originated over 550 loans
- The average annualized rate-of-return realized on investments made in GROUNDFLOOR loans since inception is 11.39 percent3
"We launched GROUNDFLOOR five years ago to level the playing field in capital markets for the benefit of individual investors and independent real estate entrepreneurs," said Dally. "This new round of operating capital is already accelerating our growth by enabling us to continue reaching more borrowers and broadening investors' opportunities to diversify."
Founded in 2013 by Brian Dally and Nick Bhargava, GROUNDFLOOR opens private capital markets to a broader base of both investors and real estate entrepreneurs. GROUNDFLOOR was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Today, it remains the only product offering a customizable real estate debt portfolio for short-term, high-yield returns. For real estate entrepreneurs, GROUNDFLOOR currently serves the residential fix-and-flip market, offering borrower friendly loan terms like a deferred payment option to give developers more control over their cash flow.
While any resident of the United States can invest via GROUNDFLOOR's platform, the company is focusing its lending operations in 24 states. For more information on GROUNDFLOOR, visit www.groundfloor.us.
1 Total 2017-18 financing of $6.2 million includes 2017 convertible bridge financing of $2.05 million raised under Regulation D prior to qualification of the broader Regulation A offering in 2018.
2 Revenue growth rate of 64 percent based on comparison of trailing twelve month GAAP revenue reported for the periods ending June 30, 2017 and June 30, 2018 respectively.
3 Average annualized rate of return based on a hypothetical portfolio consisting of an equal investment in all 312 series of Limited Recourse Obligations and Notes that has a) been offered under Regulation A, Regulation D and the Georgia Notes Program respectively since February 2014 and b) returned capital to investors as of June 30, 2018.