Groundfloor surpasses $1 billion in investments, celebrates 10-year-anniversary

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Feb 21, 2023, 09:17 ET

The category creator remains true to its mission of leveling the playing field in private capital markets for individual investors

ATLANTA, Feb. 21, 2023 /PRNewswire/ -- Groundfloor, the wealthtech platform that makes real estate investing easy for everyone, is celebrating its 10-year anniversary. Since the company launched, Groundfloor has delivered consistent 10% annualized returns across its investment offerings, and it has now surpassed $1 billion in total retail investment volume.

In 2013, co-founders Brian Dally and Nick Bhargava dreamed up the idea of creating a private capital marketplace open to everyone, not just the 1%. Bhargava helped author the Title III of the JOBS Act of 2012, designed to allow more small businesses to access capital. The two picked up and moved from Raleigh to Atlanta because the State of Georgia enacted the Invest Georgia Exemption, which liberalized securities regulations conducted within the state. Under Regulation A and the Invest Georgia Exemption, Dally and Bhargava entered unchartered territory, and for the first-time ever, Groundfloor packaged real estate debt securities for fractional participation by the general public. The first offering created $2 million in loans in Georgia alone, demonstrating the demand for real estate debt investing.

"We started Groundfloor because we saw that capital markets were due for a big disruption," said Dally. "We focused on real estate debt since being in first lien position is lucrative, but more secure and less volatile than owning equity in the same property. The mass market retail investor has never had such access to this part of the residential real estate capital stack."

With an idea that no company had ever tried before, Groundfloor then became the very first company qualified by the U.S. Securities and Exchange Commission to offer real estate real estate debt investments for both accredited and non-accredited audiences, eventually expanding investment opportunities to all 50 states.

"We created a product qualified by the SEC and with a low barrier to entry," says Bhargava. "Regardless of real estate investing experience, Groundfloor offers a customer-facing platform empowering investors to develop their own strategies, or using our automation tools."

Today, Groundfloor remains true to its mission of leveling the playing field so everyone can benefit from the high yields of real estate investing. In fact, to this day, anyone can still fractionally invest in real estate with as little as $10 — the same low barrier to diversification as when the company first launched to the public. Many other companies emerged to mirror what Groundfloor accomplished, but none have generated consistent, short-term, 10% returns.

Through 10-years of regulatory and product innovation, Groundfloor's achievements include:

More than 200,000 registered users for its platform
Consistent 10% returns with short-term yields in 9-18 months
Nearly $300 million in Assets Under Management (AUM)
Surpassing more than $1 billion in investments on its platform
Issuing more than 4,100 loans to more than 2,000 independent developers and operators of fix-and-flip, new construction or buy-and-rent properties
Developing many new categories of residential real estate investment products including debt and equity
Raising $41 million in capital, including several rounds of public investment, with 30.2% of Groundfloor being customer owned
Garnering numerous awards for its rapid growth, innovation and culture, including being named to the Inc 5000 the last three years, Deloitte Tech 500 the last two years, "Real Estate Platform of the Year" and "Best Places to Work"

Although Groundfloor has evolved over the years, the core idea remains the same. The company originates loans to borrowers who are generally independent real estate developers looking to fix-and-flip, build new construction or create buy-and-rent properties. Groundfloor issues loans to qualified borrowers and then offers investment securities collateralized by the properties, all qualified through the S.E.C. for maximum oversight and transparency. The public, both accredited and non-accredited investors, may then invest fractionally into those securities in the form of $10 increments through Groundfloor's easy-to-use, proprietary investment platform that simplifies the process.

"I remember the early days in 2013 when we all were trying to figure out how this new investment crowdfunding thing was going to work, and I decided to invest back then because I thought Brian and Nick would be able to figure it out," said Mark Easley, an early investor and shareholder. "They created this beautiful, new financial asset class for everyday investors. I especially appreciate how Groundfloor has stayed true to its goal of making the platform work well for borrowers and investors. I'm looking forward to the next 10 years!"

To learn more about Groundfloor and begin investing, visit their website or download their apps on the Apple App Store or Google Play today.

About Groundfloor
Celebrating its 10th anniversary in 2023, Groundfloor is an award-winning fintech company that makes real estate investing easy for everyone, whether you're a beginner or a pro. Known for its regulatory prowess and developing completely new financial products for individual investors, the company was the very first to be qualified by the U.S. Securities & Exchange Commission to offer real estate debt investments for both accredited and non-accredited audiences alike. The company has won numerous awards for its product innovation and growth, including three years in a row of being on the Inc. 5000 List. Since it launched in 2013, Groundfloor's investors have consistently seen 10% annualized returns across its short-term investment offerings. For more information or to get started investing fractionally in real estate, visit Groundfloor.com.

Media Contact:
Hela Sheth
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SOURCE Groundfloor Finance Inc.