US-based real estate crowdfunding platform Fundrise has received additional series A funding from investment firm Guggenheim Partners, venture capital firm Index Ventures and private investors, bringing the total raised in the round to $38m.
Fundrise raised $31m in the first tranche of the round in May, which was led by China-based social network Renren and also featured investment firm AckmanZiff Real Estate Group, Berman Enterprise and various angel investors.
Fundrise allows lenders to invest in specific properties for as little as $100, and as much as $10 million, per share, from which they can earn typical returns of 12% to 14%.
Ben Miller, co-founder of Fundrise, said: “These investments from top players in the real estate and financial industries provide further confirmation of real estate crowdfunding as a viable and effective investment tool.”
Brothers Ben and Dan Miller founded Fundrise in 2010, contributing $2m in seed funding.