Startup failed to land another round of funding
Crowdfunding startup RealtyShares has failed to land another round of funding, according to TRD. The company will cease making new investments and is laying off the majority of its employees.
Another one bites the dust… The startup raised more than $63 million in VC funding. Competitors like Cadre, RealtyMogul, and Fundrise will continue their mission to disrupt the industry. However, it appears that investors aren’t ready to commit millions of dollars after simply browsing through deals online.
Inferior deals, same approach: The sales pitch isn’t matching reality. Although deals are being completed, these startups continue to raise equity the same way a traditional sponsor does. Further compounding the problem is the fact that these startups offer inferior investment opportunities.
Grand vision: None of the aforementioned companies have been able to democratize the asset class by opening investments to all.