Groundbreaker, previously an investment crowdfunding platform and now a software solution for real estate investment firms, has raised $2 million in growth capital. The funding was led by Andrew Bluhm, of the family behind Rivers Casino, Walton Street Capital, and marquee Chicago properties.
Groundbreaker, a bootstrapped company, reports that it currently supports $3 billion in assets under management and thousands of individual investors.
Jake Marmulstein, CEO and founder of Groundbreaker, said the funding will enable his company to invest more in our product and on customer growth:
“Having been in the shoes of real estate investment professionals, and received years of customer feedback, we developed our application with the voice of every stakeholder—from investor relations to controllers, capital markets professionals, and high net worth investors.”
Marmulstein explained that he discovered the inefficiencies of real estate investing firsthand at Watermark Capital Partners, a real estate investment trust.
“On another late night in the office fixing a waterfall model, I grew frustrated and started searching for a better way to do my work. I only found complex software that served large institutional firms, but nothing for the vast majority of companies who fund their deals through high net worth and accredited investors,” stated Marmulstein.
He claims that Groundbreaker is the first product to streamline investment management, fundraising, and investor relations for real estate investment firms that raise capital from individuals.
Currently, Groundbreaker is working on a new version of its platform that is even more intuitive so that anyone can use the platform, regardless of their comfort around technology.
“We want to be the easiest to get started on, the easiest to explain, and the easiest to maintain and use,” said Marmulstein.
Groundbreaker aims to provide a set of tools that become indispensable to typical real estate deal sponsors.
Bluhm explained that Groundbreaker’s software is specifically designed for small to midsize real estate syndicators to efficiently run their business.
“Think of it as the plumbing that directly connects investment companies to their investors, enabling easy communication, fundraising, and even distributions.”