Concreit closes on $ 6 million to allow more people to invest in the global private real estate market – TechCrunch
concrete, A company that wants to open up real estate investing to a wider audience announced today that it has closed $ 6 million in a seed funding round led by Matrix Partners.
Hyphen Capital participated in this fundraising round in addition to individual investors such as Betterment Founder and CEO Jon Stein. Andy Liu, partner of Unlock Venture Partners; investor and advisor Ben Elowitz. Concrete capital The post-monetary valuation is $ 22.5 million.
Seattle-based startups also released the app today. The app claims that “anyone” can invest in the global private real estate market for just $ 1.
It is a high claim. But let’s start with a little background first.
Concreit is not the first time that co-founders Sean Hsieh and Jordan Levy have collaborated. A pair of already established and primed VoIP communication platforms Flowroute Sold to West Corp. After selling the business, Hsieh and Levy decided to start a business that, in their own words, “can help everyday people become more financially secure.”
A second-generation immigrant, she worked in a restaurant with her family, where they shared the dream of achieving financial freedom through real estate. Likewise, Levy says he grew up watching his parents build a small construction industry from scratch. He was intrigued by the idea of passive income through single-family rental housing, but was disappointed with the overheads, risks and hassle of managing his own single-family rental investment.
The duo therefore worked together to design a mobile first service that would allow small investors to benefit from real estate “without having to repair at 2 am on Saturday”. Enter Concreit.
Today, the company says most investors can open a Concreit account and make their first investment on their mobile device within minutes. The company’s free mobile app allows consumers to invest just $ 1 in a fund managed by a team of investment professionals. Withdrawals can be requested at any time through the app and sent after approval.
The platform facilitates weekly earnings, automated investments, and on-demand withdrawals while composing weekly earnings.
After selling Flowroute, Hsieh said, “I saw the opportunity to earn excellent APR through private real estate investments while reducing its correlation with traditional equity and fixed income markets. “But they were either already rich or just for the necessary multi-year capital commitment.” Concreit gives everyone access to the real estate portfolio and withdraws when necessary. You will be able to access it. “
Put simply, this startup wants to allow everyone, not just the rich, to invest in real estate.
According to Hsieh, Concreit gives the “general public” the ability to access real estate strategies commonly used in large hedge funds and private equity funds.
“We are seeing an increase in demand in the retail crypto space for alternatives and other ways to invest outside of the public market, and for those who value diversification,” Hsieh told TechCrunch. .. “”While most of the rest of the competition is focused on marketing and selling securities, we know that to be an innovator in this area we need to provide investors with a truly unique experience. Was here. “
The Concreit platform is designed for a more connected investment experience.
“We knew early on that digital natives deserved a whole new real estate investing experience and needed to be 100 times better than delivering them digitally by taking advantage of traditional real estate investing opportunities,” said Hsieh. Said.
On the platform side, Concreit has therefore built its own cloud-based securities accounting engine. This allows companies to process fractional calculations, integrate many trust practices, and apply them to the “more labor intensive” private equity market. Focus on real estate.
“We have taken many of the cloud architecture work we have started in the telecommunications industry and applied them to back office accounting solutions that give investors a competitive edge in what they offer,” says Hsieh. “This allows us to perform accounts more frequently, which allows us to pay weekly dividends, handle fractional redemptions and ultimately provide a more real-time experience for our users.”
Concreit’s First Private REIT Fund Focused on Passive Income Consists of Low Risk Bonds First mortgage loans for private market housing and commercial real estate. Funds, According to the company, the annual turnover is 5.47% and is managed by a team of industry experts. The startup has added more than 18,000 clients to its platform since being SEC certified (just over a year) and doubled its user base in August.
“OhToday’s users can invest in any amount, no lock-ups, with weekly payments and an experience as easy and familiar as a savings account, ”said Hsieh.
From the matrix Dana starderJoined the Board of Directors of Concreit in connection with its financing, I believe Concreit has leveled the competition for real estate investing by making it more accessible.
“What Concreit has built is very difficult, both in terms of technology and regulation. “ He told TechCrunch. “In particular, the alternative asset class is known to be closed to the average consumer, leaving only wealthy investors with high returns.”
Concreit closes on $ 6 million to allow more people to invest in the global private real estate market – TechCrunch Source link Concreit closes on $ 6 million to allow more people to invest in the global private real estate market – TechCrunch