PeerStreet, a crowdfunding platform that gives investors easy access to high-yielding loans that are collateralized with real estate, has closed $60 million Series C funding round. The round was led by Colchis Capital, with a consortium of institutional investors. Existing investors Andreessen Horowitz, World Innovation Lab and Thomvest Ventures also participated.
High-yield real estate loans
Founded in 2013, PeerStreet allows investors to easily invest in
high-yield real estate loans that were historically very difficult to access.
PeerStreet is secure and intuitive with an easy-to-use interface.
With the economy heading toward a potential slowdown, investors are looking for alternatives to stocks and bonds and are turning to real estate as a result. That’s benefiting PeerStreet and financial technology startups like it.
With PeerStreet’s unique technology-driven marketplace, accredited investors are able to diversify their capital in a fixed-income asset class that had previously been difficult for individuals to access. Loans are sourced from vetted private lenders throughout the United States who often have regional real estate expertise and long-term borrower relationships. Most of the loans are short term ranging from six to twenty-four months and are underwritten with Loan-to-Value (LTV) of under 75%. Lenders on the platform use the investors capital to lend to people who buy real estate investment property to flip or generate income.
“We’ve been a strategic partner of PeerStreet for years as an investor in the company and in loans on the marketplace. Leading this round was a natural next step for us… ; We’re excited to be a part of their growth as they continue to innovate as the market leader”, said Ted Conrads, co-founder and president at Colchis Capital.
“2019 has been an incredible year of growth for PeerStreet, and this funding round will accelerate that growth…; The injection of equity capital into our business via the Series C, combined with strong demand from loan buyers, means we will continue to provide value for lenders, end borrowers, and investors for years to come”, said Brew Johnson, PeerStreet’s CEO and co-founder