As reported this morning by Forbes, we’re pleased to announce the completion of a $60 million Series C funding round. Colchis Capital led the round with a consortium of institutional investors. Existing investors Andreessen Horowitz, World Innovation Lab, and Thomvest Ventures also participated.
This raise will help us continue to hire top talent and further scale our two-sided marketplace—the first and largest of its kind for investing in real estate debt.
“We’ve been a strategic partner of PeerStreet for years as an investor in the company and in loans on the marketplace. Leading this round was a natural next step for us,” said Ted Conrads, co-founder and president at Colchis Capital. “We’re excited to be a part of their growth as they continue to innovate as the market leader.”
In addition to the $60 million in funding, we also secured $4.25 billion in new capital commitments from institutions to purchase loans through our proprietary platform. These commitments will help bolster our existing suite of short-term bridge loan products and grow our recently launched 30-year buy to rent loan program.
When speaking about the raise, Brew Johnson, our co-founder and CEO, was proud of the success but remained focused on our vision as a company. “2019 has been an incredible year of growth for PeerStreet, and this funding round will accelerate that growth,” he said. “The injection of equity capital into our business via the Series C, combined with strong demand from loan buyers, means we will continue to provide value for lenders, end borrowers, and investors for years to come.”
Each investment opportunity we offer is reviewed both algorithmically by the PeerStreet platform, as well as manually by our experienced in-house real estate and legal teams. We then aggregate those loans for institutional and accredited retail investors, who in turn provide PeerStreet-approved lenders with capital. Those lenders then make loans to end borrowers who buy properties, improve them, then either sell them to homebuyers or rent them out to tenants.
Reflecting on how PeerStreet’s efforts align to today’s market, COO and co-founder Brett Crosby said, “I think our society is at a crossroads—there is a shortage of housing in many areas of the country and nearly 40 percent of existing homes were built before 1970. We can either build more homes and continue to take over green spaces, or we can up-cycle the existing aging and dilapidated housing stock. PeerStreet’s business model ultimately supports real estate entrepreneurs doing the latter, curing the capital constraints that have held them back and allowing them to reinvest in American communities.”
