This Crowdfunding Startup Targets Institutional Investors—And It's Raised Over $100M
Real estate crowdfunding startup Sharestates has officially raised over $100M through its online platform in just one year—by using institutional investors.
Sharestates co-founder Allen Shayanfakr says about 80% of the company’s crowdfunding dollars come directly from investment funds, with the rest being more “traditional” crowdfunding investors, The Real Deal reports.
The startup handles bridge funding for small real estate projects, and boasts an average annual 10.4% yield, paying out $21M to investors to date.
Rival crowdfunding sites like Prodigy Network, Patch of Land and Fundrise have put together most of their funds through smaller investors.
Still, more and more crowdfunding sites are getting capital from institutional giants, raising the question: At what point are you no longer part of the “crowd?” [TRD]
