Investors included Data Collective, Y Combinator Partner Garry Tan, Reddit co-founder and author Alexis Ohanian, Paul Bucheit and a collection of real estate and wealth managers, Mr. Hooper said. RealCrowd is a Y Combinator alumnus.
Real estate operating companies–which buy, develop and sometimes lease and manage their assets later–can use RealCrowd to post information about their various projects, seek and receive funding through the site, and get connected to verified, accredited investors who they may have never otherwise encountered.
Accredited investors can search the deals listed on RealCrowd and put their money into an asset class, or properties that they otherwise may not have known about, Mr. Hooper said.
One firm using RealCrowd, Xebec Realty Partners in Los Angeles, recently allocated $2 million of a $5 million total capital raise for a project to develop a new industrial building in Central Los Angeles. It listed the deal on February 9 and has already attained commitments to fund 70% of that $2 million, according to Xebec Chief Community Officer Debbie Moysychyn.
She thinks Xebec will close the deal within another week or two. Normally, that kind of fundraising would take her firms’ founders months of networking and meeting with real estate investors offline, Ms. Moysychyn said. The firm is still doing that work but feels RealCrowd is a perfect supplement to its local efforts.
read more: http://blogs.wsj.com/venturecapital/2014/03/26/realcrowd-raises-1-6m-to-bring-crowdfunding-to-real-estate/