Yieldstreet In Talks To Purchase Investment Platform Cadre
Real estate crowdfunding platform Cadre, once valued at $800M, is in talks to be acquired.
The New York-based company, founded in 2014 by CEO Ryan Williams and Jared and Joshua Kushner, is in talks with Yieldstreet to be acquired at a valuation of roughly $100M, The Information reports.
A source familiar with the talks told Bisnow that the company has received acquisition interest from several companies and has been exploring its options to boost its competitiveness beyond a sale, including making its own acquisitions or entering new partnerships. The source disputed the valuation figure reported by The Information.
Cadre was founded as a platform that would allow investors to buy fractional shares in commercial real estate at investment levels below those typically required of accredited investors. In 2017, Cadre’s valuation was $800M, according to CB Insights. It has raised venture capital funding across five rounds for a total of $133M, according to Crunchbase.
In 2018, Goldman Sachs partnered with the startup, putting $250M from its wealth management division into the platform. In turn, GS clients were able to use Cadre to pick investments. Its other investors include the Kushner family, SL Green, Andreesen Horowitz and Peter Thiel’s Founders Fund.
A spokesperson for Cadre declined to comment. A Yieldstreet spokesperson didn't immediately respond to a request for comment.
Real estate startups have struggled to stay afloat in the current market as high interest rates have led investors to change their priorities from growth potential to profitability.
In July proptech company Matterport slashed its workforce by 30% and reduced its real estate footprint. That same month, smart lock proptech startup Latch let go of 59% of its employees. For the proptech sector as a whole, weekly average funding is currently $198M compared to $545M in 2022, according to the Center for Real Estate Technology and Innovation.
While Cadre explores its options, one of its primary competitors is embroiled in scandal. CrowdStreet, which also raises funds from small-time investors for commercial real estate deals, is reckoning with the fallout of an embezzlement scandal after developer Nightingale Properties used the platform to allegedly divert more than $40M in funds intended for purchases into accounts controlled by its CEO, Elie Schwartz.
CrowdStreet's CEO, Tore Steen, was ousted in the wake of the fiasco.
