Groundfloor, the wealthtech platform that allows people to build wealth through real estate, announced the opening of its annual campaign to raise growth capital for the company through a crowdfunded equity offering in partnership with Wefunder. The proceeds will aid in accelerating customer acquisition and continued product development.
Groundfloor is the first and only company qualified by the SEC to issue payment-dependent real estate notes for non-accredited and accredited investors alike. Groundfloor offers short-term, high-yield real estate debt investments to the general public. Over $800 million has been invested on the platform to date, with the investments averaging a 10% annual return. The platform currently has over 200,000 users and continues to grow rapidly.
“We believe everyone deserves better opportunities to build and protect wealth,” said Brian Dally, co-founder and CEO of Groundfloor. “With Groundfloor, everyone gets to be the bank, and profit accordingly. And now, with this latest round of financing opening to the public, everyone gets the chance to be a venture capitalist, too.”
Groundfloor has raised more than $38 million from notable angels, venture capitalists, and more than 6,375 individual retail investors. The company has grown revenue at a compound annual growth rate of 62% since 2018. Revenue growth is accelerating from $14.1 million in 2021 to a projected $23.1 million in 2022.
Investors can consistently earn up to 10% percet returns with short-term investments that are secured and backed by real assets, the company said. Investors can pick and choose individual renovation projects to invest in based on their interests or use Groundfloor’s automatic investing tools to continuously invest in projects that meet pre-set criteria. Investments repay every nine to 12 months on average, providing exceptional liquidity on a secured investment backed by real assets in the same first lien position typically taken by banks.
“Nick and I first conceived of Groundfloor in the wake of the Great Recession of 2008-10. Over the years, our platform has proven to be a reliable way to earn high yields without sacrificing liquidity or suffering from volatility,” said Dally. “At a time when it’s needed more than ever, we’re leveling the playing field for more investors and more real estate developers who utilize their capital. And now, in partnership with Wefunder, we’re opening a new round of financing to stay on the offensive in 2023.”
