In a solid indication of confidence of the young real estate crowdfunding platform, Fundrise has received solid investor interest in its self-crowdfunding IPO under Reg A+. Demand was sufficient to compel management to increase the maximum funding round from 2 million shares to 3 million shares of Class B Common Stock. At a price per share of $5.00, this means Fundrise may now raise up to $15 million.
In an updated Form 1-A and associated Offering Circular, Fundrise explained:
We are offering up to 3,000,000 shares of our Class B Common Stock to the public at $5.00 per share. This offering commenced on February 1, 2017 and as of February 2, 2017, we had received subscriptions from approximately 2,320 potential investors, with at least one potential investor from each of the 50 U.S. States and the District of Columbia, for approximately 2,920,000 shares of our Class B Common Stock, or an oversubscription of 46% of our original qualification of 2,000,000 Class B Common Stock that had been initially qualified to be offered had been sold. Accordingly, we are including in the offering an additional 1,000,000 shares of our Class B Common Stock to be sold pursuant to this offering circular.
The offer was only made available to individuals that had previously invested via the Fundrise platform. As of today, the platform indicates the “offering is paused due to high demand.”
The most recent Offering Circular otherwise was the same as previously filed and approved by the SEC that was filed in January 31, 2017.
Fundrise is the first real estate crowdfunding platform to set up operations in the United States. Starting as a single property investment platform, Fundrise has since morphed into a real estate investment fund platform using Reg A+ as a vehicle for their “eREITS” – which are non-listed REITs. It will be interesting to see how quickly the over-subscription allotment fills.
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