AssetAvenue, a debt based real estate crowdfunding platform, has raised $11 million in a Series A funding round led by DCM Ventures. Founded in 2013, this significant funding will dramatically boost AssetAvenue’s growth as it invests in technology and product development. The funding is indicative of the growing interest by VCs to capture the wave of alternative finance that is transforming the traditional finance landscape. DCM Ventures is based in Silicon Valley but has offices in Beijing and Tokyo. DCM has also invested in SoFi, another high flying debt based funding platform that is expected to announce an IPO later in 2015. Additional investors included NetEase, Matrix Partners and Ron Suber, President of Prosper.
“We are thrilled to have this exceptional group of investors supporting AssetAvenue’s mission to revolutionize the real estate lending industry,” said David Manshoory, CEO and Co-Founder ofAssetAvenue. “We will use this infusion of capital to further accelerate our growth and deliver on our promise to better serve those seeking quick and efficient access to capital on our platform, while also providing institutional and accredited investors the ability to earn attractive returns.”
AssetAvenue offers bridge and transitional loans for commercial real estate such as office buildings, industrial properties, shopping centers, apartment complexes and luxury, non-owner occupied residential properties. Investors include both accredited individuals and institutions who may select “professionally vetted loans”. AssetAvenue provides bridge financing from $250,000 to $25 million per property. Investors may participate in funding with as little as $5,000.
“We’re extremely excited to support AssetAvenue’s rapid growth,” said David Chao, General Partner at DCM Ventures. “The company’s ability to provide quick and efficient loans through its use of technology will dramatically change how lending is done in the commercial real estate space.”
DCM Ventures currently holds about $2.5 billion under management having invested in over 250 technology companies in both Asia and the United States.
With over $2.5 billion under management, DCM Ventures has invested in more than 250 technology companies across the United States and Asia.
“We were one of the lead investors in the company’s seed round, and our belief in the AssetAvenue team has been reinforced after seeing the company achieve significant milestones in its first year,” added Josh Hannah, General Partner at Matrix Partners. “The team is very experienced and they have identified a great opportunity to address the needs of an underserved market that is not being met by current banking solutions. We’re pleased to participate in the Series A round and look forward to seeing AssetAvenue’s growth over the next year.”
AssetAvenue was co-founded by Manshoory, Kevin Arrabaca and Chris Ganan. All three are real estate industry executives with decades of experience. Arrabaca, President of Real Estate Investments, previously held management positions at Colony Capital and American Capital Realty, and has underwritten over $10 billion of real estate throughout his career. Chris Ganan, President of Capital Markets, has over a decade of real estate experience sourcing and structuring joint ventures and funds with private equity, hedge fund, and high net worth foreign and domestic investors.