This post is part of our live coverage of FinovateSpring 2014.
Our next presenter is real estate crowdfunding innovator, Realty Mogul.
“Realty Mogul is crowdfunding for real estate, the world’s largest online marketplace for real estate lending. Investors are empowered by investor dashboards that standardize and streamline real estate investments across different real estate companies, countless geographies, real estate property types and the entire real estate capital stock. These dashboards allow investors 24/7 access to watch how their real estate investments are generating passive income for them.”
Presenting: Jay Samit (Executive Chairman) and Justin Hughes (CTO & Co-Founder)
Product Launch: March 2014
Metrics: The largest real estate crowdfunding company in the U.S., Realty Mogul has 15 employees and investments in over $100 million worth of real estate value.
Product distribution strategy: Direct to Consumer (B2C), Direct to Business (B2B)
HQ: Beverly HIlls, California
Founded: May 2012
It is hard to believe that it is almost time for FinovateSpring 2014.
There’s still plenty of time for you to get your tickets to our upcoming event in San Jose, California on April 29 and 30. Our final Sneak Peek preview post is up, all the companies who were prepping under the radar are now out of stealth, and we can’t wait for you to see what this year’s spring crop of fintech entrepreneurs and innovators has in store.
Before we do, however, let’s take a moment to take a look back at last year’s FinovateSpring alums. As we scrolled through blog archives, several themes jumped out: the appetite for startups remains as passionate as ever, with three of our Spring 2013 alums being acquired by such financial sector potentates as Intuit and PayPal. And venture capitalists continue to see innovation in this space as a more than worthwhile investment, with 20 separate fundings for Spring 2013 alums
We’ve grouped the achievements into four categories: Exits, Fundings, Awards, and Acquisitions. Enjoy!
- Jack Henry buys Banno for undisclosed sum
- The rumors are true: eBay’s PayPal acquires Braintree for $800 million in cash
- Intuit buys tax planning/preparation specialist GoodApril
- TaxAct acquires Balance Financial
- CardFlight secures $1.6 million in seed funding from ff Venture Capital
- Encap earns seven-figure investment from ProVenture Seed
- EyeVerify earns $2.3 million in Series A funding
- Jemstep raises $4.5 million in Series A round
- Kabbage brings in $270 million in debt financing to provide small businesses with funding of their own
- Kabbage brings in $75 MIllion in debt financing
- Leaf raises $20 million from Heartland Payment Systems
- Alternative lender LendUp raises $14 million in new funding
- D3 Banking creator Lodo Software Brings in $3 million
- Narrative Science secures $11.5 million in Series C funding
- OpenCoin wins investment from Google Ventures, IDG Capital Partners
- P2BInvestor raises $1.2 million in Series A round
- PayNearMe leverages Family Dollar Partnership; raises $20 million
- PayNearMe raises $10 million in Series D funding, launches Express Merchant Onboarding Option
- Prestadero raises 5 million pesos ($400,000 USD) in first round of funding
- Quantopian raises $6.7 million in Series A round
- Realty Mogul raises $9 million in round led by Canaan Partners
- SeedInvest raises $2 million in crowdfunded investment campaign
- SeedInvest Raises $1 million in round Led by Jumpstart New Jersey Angel Network
- Zooz Closes $2 million Series A round Led by XSeed Capital
- OpenCoin acquires SimpleHoney
- Kofax acquires data integration software provider Kapow Technologies
- NICE to acquire Causata to enhance customer experience management
Want some context on the torrid pace of fintech financing in the first three months of 2014?
Consider this: a year ago, fourteen Finovate alums raised a total of more than $150 million in the first quarter of 2013.
A year later, we have just nine alums raising more than twice as much in the month of March alone.
March Madness, indeed.
Q1 of 2014 saw 23 Finovate alums walk away with just under $600 million in capital. The biggest haul of the quarter came courtesy of Klarna
, which raised more than $125 million.
But there were plenty of similarly impressive fundraisings, including the $85 million raised by Credit Karma
, and the $77 million and $75 million secured by OnDeck
Total raised = More than $592 million
January — $91 million raised by seven companies
February — $139 million raised by seven companies
March — $362 million raised by nine companies
CEO and co-founder of Realty Mogul, Jilliene Helman, said that her goal was to “bring the $11 trillion commercial real estate market into the 21st century.”
Thanks to Canaan Partners, the real estate crowdfunding startup now has $9 million more to help make that happen.
Calling her innovation “democratization of deal flow”
, Helman’s company saw growth of more than 400% in the six months since July, and now has more than 6,000 accredited investors using Realty Mogul’s platform. And this deal with Canaan Partners arguably helps put Realty Mogul in the same conversation with other crowdfunders that have attracted venture capital interest such as CircleUp.
Total capital raised by Realty Mogul now stands at approximately $10 million.
Hrarch Simonian, a principal at Canaan Partners who also sits on the Realty Mogul board of directors, compared what Realty Mogul is doing for real estate investing to what another Finovate alum is doing for retail lending. “Realty Mogul will be the next disruption in a massive asset class just like Lending Club has been for the consumer credit market,” he said.
In addition to recently celebrating the first anniversary of its launch, Realty Mogul announced
just a few days ago that crowdfunders using the platform had invested in more than $100 million worth of real estate. In a note to investors, CEO Helman noted this and stressed a commitment to technology going forward, saying the company has budgeted more than $2 million toward developing Realty Mogul’s proprietary technology.
Founded in May 2012 and headquartered in Los Angeles, Realty Mogul made its Finovate debut at the spring show in 2013. See a video of the company on stage here
And for more information about our upcoming FinovateSpring 2014 event, click here
Happy First Birthday, Realty Mogul!
And while other crowdfunding platforms may celebrate with cake or champagne, leave it to Realty Mogul to mark the occasion with news that its investors have put $14.6 million to work financing more than $100 million worth of real estate investment.
They’ve even published a helpful infographic that shows how they did it.
“In just 12 months, Realty Mogul has become the largest online marketplace for real estate investing,” the company wrote. “And in just six months starting in July we grew nearly 400% in investments.”
“We thank our valued investors and look forward to an even better 2014.”
Realty Mogul serves as an online marketplace that makes it easy for accredited investors to invest in real estate properties ranging from retail to residential. Using a crowdfunding model, Realty Mogul allows investments as low as $5,000, and investors can earn investment income as quickly as the next month or quarter.
A few metrics on Realty Mogul:
- 67% of investments made by repeat investments
- 55% of investors have made multiple investments
- More than 6,000 accredited investors are using the platform
- The average age of Realty Mogul’s investors is 42 (the youngest, 24; the oldest, 75)
TechCrunch noted that the investments consisted of 58 separate properties in 14 different states.
Founded in May 2012 and headquartered in Los Angeles, California, Realty Mogul is led by CEO Jilliene Helman. The company demoed its technology as part of FinovateSpring 2013 in San Francisco. See Realty Mogul in action here