CrowdStreet announced today that it closed a $3.5 million Series A funding round, which was led by Rally Ventures and included investments from Bend-based Seven Peaks, as well as the Portland Seed Fund and Green Visor Capital.
The startup offers a platform that connects real estate developers in need of capital with investors. The crowdfunding, marketplace model lets investors to browse multiple projects and select the ones that work best for them. The company gained additional traction last May after launching a white-label version of its software, allowing developers to post investment opportunities direct to their own websites and manage the investment process.
CrowdStreet was originally founded in Bend in 2013. The company went through FoundersPad. CEO and co-founder Tore Steen was also on stage at the Bend Venture Conference in 2014, garnering a $100,000 investment from Seven Peaks then as well. Darren Powderly, of Bend, is a co-founder as well as CrowdStreet’s vice president of business development.
“CrowdStreet has experienced incredible growth since launching its marketplace in 2014, which was complemented by our SaaS offering that debuted in May 2015. Our unique offering has attracted over 40 commercial real estate clients, with more than $1 billion in institutional-quality assets managed through the CrowdStreet platform,” Steen says in the company’s news release.
“Our latest funding will enable us to accelerate our already impressive client growth and continue to release innovations to our platform that redefine real estate fundraising, lead nurturing, investor communications and distribution management for the digital age,” he says.
Jeff Hinck, general partner with Rally Venture will be taking a seat on CrowdStreet’s board. “CrowdStreet is taking a comprehensive approach to creating a vibrant marketplace for commercial real estate investment that includes something others don’t have: the underlying SaaS technology that enables developers and operators to manage the relationship with investors across the entire lifetime of the investment,” Hinck says. “The CrowdStreet solution has quickly gained traction in the market because of its ability to connect investors with high-quality investments that deliver strong ROI.”
Though the company still has a small presence here in the 1001 Tech Center, CrowdStreet’s main offices are now in Portland.
You can reach Kelly by email at [email protected].