San Francisco based real estate investment platform RealtyShares has raised $28m in Series C funding led by Cross Creek Advisors. RealtyShares is a real estate crowdfunding platform that provides accredited investors access to pre-vetted real estate investment properties and an opportunity to invest as little as $5,000 into each property.
Founder and CEO Nav Athwal says that RealtyShares has over 120,000 users on the platform. The startup says it has deployed over $500 million across more than 1,000 properties since it was founded in 2013. RealtyShares aims to “diversify in real estate in a way that hasn’t been possible before,” said Athwal. He said that the typical transaction is between $2 million and $50 million. Although once considered a site for crowdfunding, Athwal says he’d like to move beyond that label. These days, RealtyShares is focused on institutional investors and accredited high net worth individuals. RealtyShares makes money from placement fees and asset management fees. Basically, it earns a commission at the time of the investment and also over time. Athwal claims that these fees are lower than the industry average.