CrowdStreet, an Austin, TX-based online real estate investing platform, announced that it raised $43 million in equity and debt capital to help fund the company's growth and make the market for online real estate investing.
The round was backed by TIAA, Cypress Equity Investments, and The Dinerstein Companies, with participation from existing investors, Grotech Ventures, Rally Ventures, Seven Peaks Ventures, and Green Visor Capital.
CrowdStreet will use the new capital to improve the technology that powers its platform and evolve the investing experience and investment management tools that investors use daily.
This investment will also help CrowdStreet expand into the wealth management channel, allowing financial advisors to help their clients easily add commercial real estate, a valuable alternative asset, to their portfolios.
"We are pleased to count so many of these leaders from across the industry as customers, partners, and now, with their participation in this fundraising round, strategic investors. They know us better than anyone and share our vision for the future of commercial real estate investing," said Tore Steen, CEO of CrowdStreet, Inc. "With their support, we can accelerate our efforts to provide even more investing products, helping investors build their financial freedom through direct real estate investing."
CrowdStreet has raised $3.6 billion for 670+ U.S. commercial real estate projects. In 2021, the company achieved its first billion-dollar year when its investor community investors funded $1.2 billion in single-property deals, professionally-managed funds, and separately managed accounts. By August 2022, 138 investments on the platform had generated an average 17.5% IRR and a 1.50x equity multiple.
Company: CrowdStreet, Inc.
Round: Equity and Debt
Funding Month: October 2022
Lead Investors: TIAA, Cypress Equity Investments, and The Dinerstein Companies
Additional Investors: Grotech Ventures, Rally Ventures, Seven Peaks Ventures, and Green Visor Capital
Company Website: https://www.crowdstreet.com/
Software Category: Online Real Estate Investing Platform
About the Company: CrowdStreet is the online private equity real estate investing platform, provides investors with direct access to a diverse range of investment opportunities, offering the ability to invest with ease and convenience. CrowdStreet offers investment opportunities on its website (the “CrowdStreet Marketplace”). Broker-dealer services in connection with an investment are offered through CrowdStreet Capital LLC (“CrowdStreet Capital”), a broker-dealer registered with FINRA and a member of SIPC. CrowdStreet is creating a community where investors and experienced real estate firms can collaborate to expand commercial real estate market participation to build and preserve wealth. CrowdStreet Advisors launched its flagship fund, CrowdStreet REIT I, Inc. (C-REIT), which combines the best of private real estate funds and public REITs, providing investors with a simple way to invest in more than 20 projects across the nation. Its mission is to deliver the best online real estate investing experience and make it easy for individual investors to diversify their portfolios.