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Groundfloor Secures $5 million Series A financing

December 9, 2015 by ei2admin

https://www.groundfloor.us
Groundfloor’s co-founders Nick Bhargava (left), who is executive vice president, and Brian Dally, CEO.

Groundflloor, the real estate lending marketplace open to non-accredited investors, said it closed a $5 million Series A round led by Fintech Ventures. Previous investors also participated in the round, bringing the company’s total financing to $7.5 million to date.

The funds from this round, which follows a recent product release, will be used to scale lending operations and a planned national expansion. Groundfloor, a Signature company of the Advanced Technology Development Center (ATDC), currently operates in nine jurisdictions nationwide and growing at a rapid pace.

“As we frequently say, the source of capital matters,” said Brian Dally, Groundfloor’s CEO and co-founder. “That’s as true in building emerging companies as it is in building more efficient, more accessible capital markets. We’re fortunate to have a resourceful investor with global perspective backing us.”

Since opening its limited, by-invite-only release following qualification by the SEC on Aug. 31, Groundfloor has doubled its investor base. To date, the company has funded 54 loans and sold more than $3 million in Limited Recourse Obligation securities.

The new capital will be deployed to support new lending-operations hires in strategic regions, develop new investor tools, and continue advancing Groundfloor’s innovative regulatory roadmap for the benefit of all self-directed investors.

“The investment from Fintech will accelerate every facet of our business,” said Nick Bhargava, Groundfloor’s executive vice president and co-founder. “We’re on a mission to establish a new and better option for household capital formation by opening the $70 billion private real estate lending market to everyone. This round is a critical milestone on that path.”

Fintech Ventures Fund is a new early-stage venture fund led by Serguei Kouzmine, a seasoned entrepreneur and senior executive with 20 years of experience building high-tech financial businesses. Fintech Ventures Fund said Groundfloor’s is its initial investment out of a new $100 million fund raised earlier this year. The fund is strategically headquartered in Atlanta and focused on non-banking lending/savings products and smart payment systems worldwide.

“We’re bullish on Groundfloor because they are delivering a new, mass-market financial product to an untapped investor class,” said Serguei Kouzmine, Finch Ventures Fund’s managing director. “The fintech market is a global phenomenon, which reaches far beyond both Silicon Valley and the United States; therefore, people should not be surprised that innovation in this market comes from many corners, and Atlanta is one of the hottest.”

Category iconFinTech,  News from Our Companies Tag iconAdvanced Technology Development Center,  atdc,  FinTech,  Groundfloor

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