RealtyShares
| ISIN | 🆔 |
|---|---|
| Industry | Real Estate Investing Real estate investment trust |
| Founded 📆 | 2013 |
| Founders 👔 | Nav Athwal |
| Defunct | 2020 |
| Headquarters 🏙️ | , , |
Area served 🗺️ | |
Key people | Nav Athwal, Ed Frost, Jeff Holzmann |
| Members | |
Number of employees | 100+ |
| 🌐 Website | realtyshares |
| 📇 Address | |
| 📞 telephone | |
RealtyShares was a San Francisco-based real estate crowdfunding company.[1] The company was founded in 2013 and as of 2018, it had over 120,000 investors with more than $870 million invested in a thousand properties.[2] Before the company became defunct in 2020, its operations were taken over by IIRR Management Services, LLC in 2019.
History[edit]
Formation[edit]
RealtyShares was founded by Nav Athwal in 2013. The company used the crowdfunding model for group real estate investments under the JOBS act and SEC Rule 506(c).[3] It was an online marketplace for real estate investing, where individual investors opened an account and accessed investments in properties in United States.[1] It initially invested in fix-and-flip, single-family residential projects and later focused on funding commercial real estate projects valued at less than $50 million.[4][5]
In September 2017, RealtyShares raised $28 million in Series C funding round led by Cross Creek Advisors, with participation from existing investors including Union Square Ventures, General Catalyst Partners, and Menlo Ventures.[6][7] The company had raised a total of $105.6 million in funding over nine rounds.[8] It was recognized as one of the Inc. 5000 companies ranking at #156 in 2018.[9]
Dissolution[edit]
Athwal left his position as the CEO in 2017. In November 2018, the company announced that it was unable to raise additional capital and decided not to take up new investments, while solely focusing on its existing portfolio. Athwal left the board in 2018 and was replaced by Ed Forst, a former senior Goldman Sachs executive.[10]
RealtyShares Inc. ceased operations in April, 2019. The company’s portfolio was handed over to IIRR Management Services, LLC. to manage the portfolio on its behalf. IIRR Management Services is a company created by iintoo investments and RREAF holdings specifically for the purpose of managing the RealtyShares portfolio. Its CEO is Jeff Holzmann. The company operates from offices in New Jersey, Utah, Texas and Honduras.[11][12][13] RealtyShares filed for bankruptcy in late 2020.[14]
References[edit]
- ↑ 1.0 1.1 "Crowdfunding house flippers: Risks and rewards". CNBC.
- ↑ Egan, John (November 20, 2018). "Real Estate Crowdfunding Pros Respond to RealtyShares' Troubles". Wealth Management News.
- ↑ "Crowdfunding Is Lowering Barriers to Commercial Real Estate Investment. Here's How to Get the Most From It". Entrepreneur.
- ↑ "Which Is Best: REITs or Real Estate Crowdfunding?". Money US News.
- ↑ Grossman, Matt (April 11, 2018). "Q&A With Ed Forst, CEO of RealtyShares". Commercial Observer.
- ↑ "RealtyShares raises $28 million for commercial real estate investing". Tech Crunch.
- ↑ "BRIEF-RealtyShares raises $28 mln series C round to transform commercial real estate". Reuters.
- ↑ "Company Financials, Valuation & Investors". Crunchbase.
- ↑ "Move Over, Uber and Airbnb. These Are the Hottest Companies in San Francisco". Inc.
- ↑ "RealtyShares' downfall shows perils of crowdfunding". San Francisco Chronicles.
- ↑ "Mann Report February 2021". My Digital Publication.
- ↑ "IIRR Management Services Discusses RealtyShares Acquisition, Vision for the Future of Real Estate Crowdfunding".
- ↑ TRD Staff (2019-05-14). "This crowdfunding firm just picked the carcass of RealtyShares". The Real Deal New York.
- ↑ "Real estate investment platform RealtyShares files for Chap. 7 bankruptcy".
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