CrowdStreet has launched a new real estate crowdfunding tool that is aimed at enhancing developers’ fundraising efforts. The new platform, CrowdStreet Sponsor Direct, will be used as a private-label platform for real estate operators and developers who want to improve their fundraising efforts and real estate management capabilities through their personal branded websites.
CrowdStreet is a commercial real estate crowdfunding platform that was established to facilitate accredited investors with feasible real estate investment opportunities. The company was formed following the enactment of the Jumpstart Our Business Startups Act, or JOBS Act, by Congress. Since its formation, CrowdStreet has raised capital of over $40 million through crowdfunding.
…investors will be able to access information about investment offers, complete transactions, get post-funding updates, track performance progress of their investments, and get returns via the branded website.
Crowdfunding has continued to evolve progressively over the past two years. Real estate crowdfunding sponsors and developers are looking for ways to allow their investors to engage on their personal websites directly. CrowdStreet is using CrowdStreet Sponsor Direct to achieve this. By using this tool, real estate sponsors will be able to offer their own branded products and services through their personal websites. This means that their investors will be able to access information about investment offers, complete transactions, get post-funding updates, track performance progress of their investments, and get returns via the branded website.
CrowdStreet Sponsor Direct will apply the same technology being used by CrowdStreet. The portal will also allow users to market their investment offers to the public or a private network directly. This new portal will largely improve the sponsors’ efficiency and transparency in their activities. The engagement of each investor can also be tracked using the new portal from the initial stage of an offer to the end. Additionally, sponsors will be able to improve and manage investor relations by using the several tools available on the portal such as being able to share documents via the portal.
With the ongoing expansion of the real estate crowdfunding industry, sponsors and investors are becoming more concerned about efficiency and transparency. Real estate crowdfunding platforms are coming up with different tools that will enhance easy access to information by stakeholders, reduce time taken to scrutinize deals, close transactions and track progress of the deals. Majority of the real estate crowdfunding platforms are using technology to provide these tools.
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