If money talks, it’s saying that real estate crowdfunding platforms may be around to stay.

Patch of Land, which both pulls in cash from accredited investors in residential real estate deals and doles it out to approved buyers, raised $23.6 million in a Series A funding round this month.

A similar real estate crowdfunding site, RealtyMogul, which helps qualified investors buy shares in commercial and residential properties for as little as $5,000, raised $9 million in a Series A funding round last year.

So far, all of the more than $18 million Patch of Land has helped investors put into real estate has gone to residential properties, but the firm is also looking to fund small commercial properties, a spokeswoman for the firm told Inman.

“The real estate lending marketplace is quickly transforming the way investors and developers interact, and Patch of Land is at the forefront of this change,” said Neil Wolfson, president of SF Capital Group, the private investment firm that lead Patch of Land’s funding round, in a statement.

Patch of Land said it will use the cash from the round to “aggressively” increase its market share, invest in technology and data systems that power its marketplace, and hire real estate and tech pros.

Real estate crowdfunding is experiencing a renaissance fueled by new technology and changes in government regulation.

Email Paul Hagey.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×