Fundrise, an online real estate investment platform, has filed an updated Form 1-A with the Securities and Exchange Commission that provides insight into their ongoing share offering.
Fundrise commenced a securities offering for “Rise Companies Corp.” back at the beginning of 2017. When first revealed, Fundrise said the offering would be for up to 2 million of Class B common stock at $5 per share. The offer was seeking a minimum raise of $1 million and a maximum raise of up to $10 million. The company quickly filled that limit and increased the amount of equity offered.
Jump forward to August of 2018, and Fundrise has set the maximum amount of the equity offer at 10,000,000 shares of Class B Common Stock. According to the Offering Circular as of August 1, 2018, Fundrise states it has settled approximately 4,474,379 shares of Class B shares.
Today, the shares are being offered at $6.60 each. There is no minimum investment but Fundrise has limted the offer solely to investors who have purchased one or more investments sponsored by their platform.
Since Fundrise launched through to December 31, 2017, the platform has originated approximately $343.8 million in both equity and debt investments across more than $1.9 billion of real estate property. Originations have grown at an estimated 339% compounded annual growth rate. As of June 2018, sponsored programs have not suffered any loss of principal or projected interest.
Fundrise states that it continues to generate a loss will not turn a profit until their platform is substantially larger.
Fundrise shifted from a single property listing platform to a fund driven service by utilizing updated rules created by the JOBS Act of 2012. Fundrise issues securities under Regulation A (Reg A+), a securities exemption that allows the platform to sell up to $50 million in debt or equity within a 12 month period. Fundrise has created a series of funds including eREITs and eFunds that target various investor return expectations.
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