Groundfloor Initiates Public Offering Using Reg A+ to Accelerate Growth

Groundfloor, a direct real estate investment platform, has launched an online public offering enabling any Groundfloor account holder to purchase stock directly from the company. The platform indicated that the online public offering aims to “level the cap table” so members of the public can own an increasing share of the fintech company.

“During last year’s successful public offering, our customers invested $4.2 million in stock to own 14 percent of the company,” indicated Co-Founder and CEO Brian Dally. “We started Groundfloor with the radical idea that with the right product and platform, people are smart enough to make their own decisions in real estate investing. Who better than the investors who benefit from our mission to finance its acceleration?”

During a recent, limited-time pre-sale to existing shareholders, Groundfloor raised $1M in new equity capital, signaling strong demand for the opportunity.

To purchase Groundfloor stock, account holders can log into their accounts and select the Groundfloor 2019 Stock Offering. For $15 per share, members of the public can own a portion of the fintech company, joining the other 2,300+ public shareholders. To participate in the online public offering, an individual must hold an investment account with the company, but anyone can open an account and start investing with as little as $10 per project.

Direct #RealEstate i#nvestment platform @groundfloor_com Preps for Online Public Offering Click to Tweet

The stock offering aims to build upon the company’s momentum from a “strong” 2018, a year in which Groundfloor said that the platform had:

  • groundfloorExpanded its qualified offering nationwide under Reg A and extended its lending business to 30 states
  • Raised $4.2M in equity to bring the company’s total to $13.8M
  • Surpassed more than $100M in loans to real estate developers to date and, in December alone, sold more than $8M in real estate investments to retail investors on the platform
  • Increased its customer base to nearly 60,000 registered users
  • Added new product offerings, such as new construction loans and a fixed annualized notes product returning 5 percent on a 90-day term
  • Generated more than $3M in non-GAAP revenue

Overall, the Atlanta-based company founded in 2013 by Dally and Nick Bhargava said that it has experienced 79 percent year-over-year revenue growth, despite volatility in public stock markets. In 2018, Groundfloor said that its investors earned a weighted average return of 10.37%, a contrast to the S&P 500 index, which was down 6.6% for the year (a loss of 4.4%, including dividends).

Crowdfund Insider reached out to Brian Dally to discuss what led to the Groundfloor’s growth in order for an update about the platform and will post details in a separate post.

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