Mogul, a real estate investment platform, reports it has closed a $15.5 million Series A funding round led by Draper Associates. According to a release, the funding will be utilized to scale its artificial intelligence (AI) powered investing services. The Series A funding arrived at a pre-money valuation of $126 million. In total, Mogul has raised $23.6 million in growth capital.
Other investors include Draper Dragon, Ava Labs’ Blizzard Fund, Jason Calacanis’ LAUNCH, Venture Togethers, and Gaingels, along with strategic angel investors from top tech and insurtech firms.
Mogul says it is cash-flow positive and not in immediate need of funding, but accepted the investment because of “strong inbound interest.” Of course, it can use additional funding to accelerate its AI services and expand its property portfolio. Much of the funding will go to new hires.
Mogul says it has reduced manual effort by 89% across its services and cut the time required per property from 18 hours to just two. The mission of Mogul is to redevelop the largely manual process of investing in property today.
Founded in 2022, Mogul explains that it combines institutional-grade underwriting, technology-enabled operations, and AI
Since platform launch, Mogul has invested over $110 million in real estate, targeting a 12-20% IRR with more than 50,000 investor sign-ups.
Since launch, Mogul has achieved significant scale and investor traction, including:
Mogul states that it is now on pace to reach a revenue run rate of $9 million by year’s end and plans to scale to $60 million within 18 months of this raise.
Alex Blackwood, CEO and Co-Founder of Mogul, described the funding as validation of their mission, adding the industry is ripe for innovation.
“… a majority of assets over the last three months selling out in under two hours, I have missed out on some of them because I didn’t act fast enough. As a platform, we are already one of one, and the capital provides us with the capability to redefine the broader real estate industry. Looking ahead, our vision is to build a vertically integrated real estate ecosystem that supports the full lifecycle of an asset. By unifying these layers, Mogul can become the defining infrastructure for the industry. In 10 years’ time, Mogul will be the first word that comes to your mind when you think of real estate.”
Tim Draper, Founder of Draper Associates, said they invested at the pre-seed stage because of the founders’ pedigree and their bold vision for the future of real estate investing.
Mogul offers fractional ownership in institutional-grade single-family rentals. The company says fewer than 1% of the properties it reviews pass its approval test.
Mogul does not indicate it uses a securities exemption, like Reg D or Reg A, to set up the investment vehicles. The company uses an “Investment Club” structure where each investment is created as an LLC. Minimum investments are approximately $250.