Groundfloor, a real estate investment platform, is partnering with Republic to raise growth capital.
According to the offering page, Groundfloor is seeking up to $5 million using Reg CF. Investors will be purchasing Series B-3 preferred stock. A minimum of $100 is required with a maximum investment of $124,000. As of this moment, Groundfloor has raised over $800,000. The offering is currently expected to close on November 1, 2024.
Groundfloor is in the housing sector and focuses on “fix and flip” properties. Unlike many markets where commercial property is moribund, housing demand remains fairly robust. As interest rates move lower, housing/multi-family – should pick up.
Groundfloor describes itself as the largest online investment platform for fractional single family real estate. Typically, offerings on Groundfloor use the Reg A+ exemption so both accredited and non-accredited investors may participate.
The company reports over 270,000 registered users and approximately $300 million in assets under management. As Groundfloor has crowdfunded itself in the past, the company reports over 7000 individual investors.
Groundfloor previously raised equity at a pre-money valuation of $234 million. This offering has no pre-money valuation.
According to the Form C offering document, Groundfloor generated a net revenue in 2023 of $20,372,337. As is typical for an early stage firm, Groundfloor generated a net loss for the year of $4,524,750. The company needs additional capital to keep things going as it seeks profitability. Groundfloor reports that as of July 31, 2024, they held $2,266,338 in cash and cash equivalents, providing the company approximately 14 months of runway.
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