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 Mogulâ€™s board told what he see are the key things VCâ€™s see when making property investments via crowdfunding:
- Technology is part of the solution, but itâ€™s not the whole solution. You need to attract both sides of the marketplace, the sponsorsâ€¦ 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 VCâ€™s making investments in property via crowdfunding, itâ€™s great news for the industry across the world.