Crowdfunding for property is becoming the largest industry in terms of committed capital, according to an article on Crowdsourcing.org.
In the US, a recent investment by Canaan Partners of a whopping $9 million to Realty Mogul illustrates this clearly. Hrach Simonian who is a principal at Canaan and sits on Realty Mogul’s board told what he see are the key things VCs see when making property investments via crowdfunding:
- Technology is part of the solution but it’s not the whole solution. You need to attract both sides of the marketplace, the sponsors and the investors.
- Is the market that a startup is in big enough, and is the timing right?
Simonian acknowledged that the real estate market is worth around $11 trillion and that niche crowdfunding platforms (which is what we believe The House Crowd is) are more advantageous over general ones, and with so many VCs making investments in property via crowdfunding, it’s great news for the industry across the world.