Crowdfunded equity campaign offers investors ownership stake in rapidly growing real estate investing company
ATLANTA–(BUSINESS WIRE)–Today, Groundfloor, the award-winning wealthtech platform that allows everyone 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 percent 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 over 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 $14.1m in 2021 to a projected $23.1m in 2022.
Groundfloor is the only platform where investors can consistently earn up to 10 percent returns with short-term investments that are secured and backed by real assets. 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 9-12 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,” says 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.”
As a provider of debt, Groundfloor can preserve investor capital through market turbulence, while profiting from capital scarcity and new opportunities to supply equity capital to fill the gap created by lower available leverage, while allowing our investors to “buy low.” As an intermediary, Groundfloor creates value by matching demand for capital with supply through market cycles.
To learn more about Groundfloor’s equity raise and to download their investor deck, please visit: https://wefunder.com/groundfloor/.
Groundfloor is a unique financial product for individual investors that allows non-accredited and accredited investors alike to participate directly in real estate investment loans on a fractional basis. We open the door to short-term, high-yield returns backed by real estate. Typical loans have returned 10 percent annually on a six- to 12-month term.
Groundfloor was founded in 2013 by Brian Dally and Nick Bhargava, and has been recognized on the Inc. 5000 fastest growing private company for the third consecutive year, and in the Deloitte Technology Fast 500 for the past two years. The company, headquartered in Atlanta, Georgia, is on a mission to reformat and open private capital markets for the benefit of individual investors and the investments they fund. For more information, visit: https://groundfloor.us/.