The Real Deal New York

Start-up firm Kickstarter uses financing to purchase Greenpoint office

August 09, 2012 10:00AM

When start-ups companies raise a new round of financing, the proceeds usually go towards expanding the business. But, the New York Post reported, against the backdrop of Brooklyn’s increasingly hot real estate scene, one firm figured it would be better to use funding to invest in real estate.

Crowd-source fundraising firm Kickstarter spent $3.6 million of a reported $10 million it secured in a  round of funding last year — provided by Union Square Ventures and Thrive Capital, among others — to buy its Brooklyn headquarters, at 58 Kent Street in Greenpoint (note: correction appended).

The landmarked building was once the Eberhard Faber Pencil factory. Kickstarter, which takes a 5 percent cut of money raised on its site, plans a restoration and renovation of the building that community officials have reportedly praised. The offices will include a rooftop garden penthouse.

The Post said the 40-employee firm is one of the few city tech start-ups that have invested in their office real estate. [Post]