Portland, Ore.-based CrowdStreet, the crowdfunding commercial real estate investment platform, has raised $8 million in a Series B funding round led by Grotech Ventures.
CrowdStreet, founded in 2013, wants to transform the commercial real estate industry. The platform builds a framework for online property investing. Real estate developers or operators can crowdfund capital and manage property offerings online, and CrowdStreet helps connect those developers and potential investors, charging developers a posting fee.
“Hundreds of sponsors and thousands of investors now use the CrowdStreet platform to raise capital and invest in real estate to build wealth,” CrowdStreet CEO Tore Steen said in a statement.
He continued: “Now, with more repeat investors and sponsors than ever, we’re realizing the network effect, which will catapult the company to the next level supported by the financing we’re announcing today.”
The latest round brings CrowdStreet’s total funding to $12.9 million. Existing investors like Rally Ventures, Seven Peaks Ventures, and Green Visor Capital and new investor Noam Bardin, CEO of Waze, joined Grotech Ventures in the financing.
The funding round brings Grotech Ventures general partner Lawson DeVries onto CrowdStreet’s board of directors.
“CrowdStreet is growing extremely fast and has proved to be very capital efficient as they’ve proven out the market and their business strategy,” DeVries said in a statement. “This round of capital allows the company to continue to build out their industry-leading fundraising and investment management platform while also becoming the go-to marketplace for institutional-quality investment opportunities for high-net-worth investors.”
CrowdStreet, which has over 100,000 investors on the platform, plans on using the funding to develop new products and services and to grow its current marketplace.