El Segundo-based PeerStreet, a platform for investing in real estate-backed loans, announced a $29.5 million Series B funding round, led by World Innovation Lab. The round also includes existing investors Andreessen Horowitz, Thomvest, Colchis Capital, Felicis Ventures, Solon Mack and Navitas Capital. The company said it will use the money for hiring and to add new types of real estate loans.

PeerStreet, co-founded by Google Analytics founder Brett Crosby, works by connecting lenders and investors in a two-way marketplace. To date, the company has funded over $900 million in loans, with zero losses to investors so far.

“We believe PeerStreet’s approach of partnering with local, private real estate lenders is the optimal solution to create new liquidity for the existing real estate finance ecosystem,” said Steve Pretre, venture partner at World Innovation Lab, who will be joining PeerStreet’s board. “This approach lowers the marketplace cost for loan acquisition, and, most importantly, taps into the lenders’ unique knowledge of local markets and borrowers. This directly benefits investors by lowering both marketplace costs and loan risk. The result is a more efficient and effective marketplace for all parties.”

According to Alex Rampell, partner at Andreessen Horowitz, PeerStreet doesn’t have high marketing costs because of its ready supply of loans.

“It’s very hard to find 8 percent-plus net yield on secured assets in under 12-month duration,” he said, noting some large investors have switched to PeerStreet from peer-to-peer lending platforms such as LendingClub or Prosper.

According to the press release, PeerStreet doubled loan volume from 2016 to 2017 and is now integrated into well-known finance apps WealthFront, Betterment and Personal Capital.

“We’re incredibly excited to add World Innovation Lab to our growing list of remarkable investors,” CEO and Co-Founder Brew Johnson said. “This investment validates our mission and will enable us to continue our growth with the goal of re-shaping real estate finance for the better.”

“We’re incredibly excited to add World Innovation Lab to our growing list of remarkable investors,” CEO and Co-Founder Brew Johnson said. “This investment validates our mission and will enable us to continue our growth with the goal of re-shaping real estate finance for the better.”

Technology reporter Eli Horowitz can be reached at ehorowitz@labusinessjournal.com. Follow him on Twitter @coachhorowitz13 for the latest in L.A. tech news.