CrowdStreet lands $12M in financing, hires execs

Deal defies major slump in VC funding for real estate crowdfunding firms

Tore Steen, CEO of CrowdStreet (Credit: iStock)
Tore Steen, CEO of CrowdStreet (Credit: iStock)

It’s been a rough stretch for some real estate crowdfunding platforms, but one just scored new financing and three new execs.

Portland, Ore.–based CrowdStreet landed $12 million in Series C financing, the firm said Wednesday, bringing its fundraising haul to $25 million since its 2013 launch.

CrowdStreet said the investors in the new round include individuals, such as former ESPN chief marketing officer Carol Kruse, and commercial real estate sponsors.

The company, which claims to have distributed $80 million to its investors, also added three hires to its senior leadership team.

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Robert Stiles, former chief financial officer at LendingHome, joined as CFO/COO. Londa Quisling was named chief technology officer, after serving as chief product officer at Treehouse. And John Havens, previously of BNY Mellon, joined as vice president of capital markets.

In September CrowdStreet said it was launching a $20 million fund through its advisory service that would target investments in Opportunity Zones — government-designated areas that investors can pour money into in exchange for tax benefits. Also that month CrowdStreet said it raised $25 million in three hours for an Opportunity Zone project in Atlanta.

The deal comes as venture-capital financing for U.S. crowdfunding firms has nearly dried up. As of the beginning of September, U.S. crowdfunding platforms had pulled in just $9.8 million this year, according to real estate technology research firm CREtech. That’s down from $47.4 million for all of 2015.

The other platforms that have secured financing this year are Groundfloor, RealtyMogul, Vairt and Wealth Migrate, according to CREtech.

The real estate crowdfunding space has dwindled since a bevy of firms hit the market — following changes in Securities and Exchange Commission rules — about six years ago. In late 2018, one leader in the field, RealtyShares, shuttered. And this summer, Prodigy Network suffered a host of financial and personnel issues that have triggered three lawsuits and have left investors hanging.