Beverly Hills real estate crowdfunding company Realty Mogul has raised $9 million in Series A financing from Canaan Partners, according to a press release.
The equity crowdfunding company, founded last year, has completed 58 deals totaling more than $104 million in property value in 14 states, according to the company’s statement.
“Canaan’s backing will help us to enable thousands of investors to have an easy, transparent way to diversify their portfolio into commercial real estate by crowdfunding opportunities previously only available to a select few,” Jilliene Helman, Realty Mogul’s founder and chief executive, said in the release.
In order to become an accredited investor on the online platform, an individual needs to have an income of at least $200,000 per year or a net worth of $1 million.
Once the investment is made and the property purchased, crowdfunding investors are paid preferred returns, which are like dividends, on a quarterly basis. They also share in any appreciation once the property is sold.
Realty Mogul makes money by charging an annual fee of 1 percent to 2 percent of the total money raised.