Great Neck-based Sharestates said it has topped $100 million in capital raised through its online crowdfunding platform, thanks in large part to partnerships with institutional investors, which have contributed about 80 percent.
In contrast, rival platforms like Prodigy Network, Patch of Land and Fundrise have raised most or all of their capital from the so-called “crowd,” or small investors.
Founded by Atlantis Organization veterans Allen Shayanfekr, Radni Davoodi and Raymond Y. Davoodi, Sharestates specializes in bridge funding for small commercial and residential real estate projects. Most investments offered on its platform are 12-month term and a minimum individual investment of $1,000. The startup said it has returned more than $21 million to its investors to-date, with an average annual return of 10.4 percent.
Formed in 2013, beta-launched in 2014 and fully operative in Februarry 2015, Sharestates’ rapid rise can be credited to a $30 million commitment — since pased — by Ranger Direct Lending Fund, a London entity spun off by Dallas-based Ranger Capital Group and funded in part by London investment bank Liberum. Ranger Direct’s commitment was “bumped up” to $50 million over the summer, noted Sharestates CEO Allen Shayanfekr, giving the crowdfunding platform added cred, and more “transparency and trust.”
“Our platform was always meant to be a hybrid between individual investors and institutional investors,” Shayanfekr told Innovate LI last year. “The source of the capital doesn’t really matter to us. The idea is to make these investment classes available to the everyday person.”
Shayanfekr launched the firm in 2013 with title insurance veterans Radni Davoodi and Raymond Y. Davoodi, who serve now as general managing partners. The platform is designed to make it easy for investors, including individuals, to invest in quality real estate deals, while giving developers quick access to funding.