Start-up company RealCrowd is bringing crowdfunding to real estate, recently raising $1.6 million dollars as part of a seed round, reported the Wall Street Journal. Companies are able to use RealCrowd in order to look for funding and to connect with accredited investors they may not have met otherwise. As seen with RealCrowd client Xebec Realty Partners, that resource can be used to supplement offline meetings with investors, and to close deals faster. Crowdfunding also enabled Xebec to tap into investors outside of their base in Southern California, including investors from New York, New Jersey and Montana.
This new kind of funding could help rejuvenate some areas of the real estate industry that are currently stagnating. RealCrowd may also be able to use the data they collect to branch out and help investors assess deals, or to help increase understanding of market dynamics among real estate operators.
Read the full article at: https://blogs.wsj.com/venturecapital/2014/03/26/realcrowd-raises-1-6m-to-bring-crowdfunding-to-real-estate/
