GROUNDFLOOR, a real estate lending platform that raises its loan funds via crowdfunding from the public, recently announced it raised an additional $4.2 million for itself in 2018, ultimately bringing its total for the last two years to $6.2 million.
The company’s acquired these funds through 2,304 investors, bringing the company's total fundraising earnings to $13.8 million.
The Atlanta-based company has mostly relied on venture capital to source its funding but has also utilized crowd funds from non-accredited investors.
However, earlier this year, HousingWire reported the company intended to launch a public offering to crowdfund for its own operations.
Instead of going the Initial Public Offering route via the New York Stock Exchange or Nasdaq, it launched an online public offering that aimed to raise more than $7 million from the public.
The online public offering offered investors 530,000 shares of common stock in the company for $10 per share. Investors were not be required to pay fees for the life of their investment and received access to regular shareholder-only loan offerings and more.
"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," GROUNDFLOOR Co-Founder and CEO Brian Dally said. "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.”
The company is currently experiencing significant growth, to date, investors have funded more than $75 million in GROUNDFLOOR real estate projects, fueling a 64% increase in year-over-year revenue.
Notably, this has resulted in the relocation of 45 member team to a new office in Atlanta's Bank of America Plaza.