Real estate investing app Fintor raises $6.2M at an $80M valuation – TechCrunch
Fintor, a fintech startup that makes it easier for unaccredited investors to invest in real estate, has just launched its mobile app for iOS and Android. It also just raised $6.2 million in expansion funding from its existing investors including Public.com, Hustle Fund, 500 Global, VU Ventures, Graphene Ventures and angel investors such as Manny Khoshbin, Andy Madadian , Cindy Bi and Marcus Ridgway.
This latest round values Fintor at $80 million, founder and CEO Farshad Yousefi exclusively told TechCrunch. With the new funding, Fintor says it has now raised a total of $9 million from investors.
The Palo Alto, Calif.-based company is qualified under U.S. Securities and Exchange Commission (SEC) Regulation A to offer investors fractional shares in properties it owns. It does this by issuing shares of limited liability companies that own the underlying properties, Yousefi explained in an interview.
Yousefi launched the company in early 2021 with his co-founder Masoud Jalali to meet a growing demand they had noticed among Gen Z and millennials to invest in real estate, an often inaccessible asset class. ordinary investors who cannot always afford to buy. entire properties.
Fintor allows its customers to invest in properties with as little as $5, according to Yousefi. The platform currently offers stocks in single-family residences in states including Georgia, South Carolina, Texas and Alabama, and Yousefi said it plans to enter 20 different markets by the end. of 2022.
Eventually, Yousefi said, he hopes to build Fintor into a global real estate platform by offering investors multifamily, industrial and other properties.
It’s a competitive market, with startups such as Landa, Nada and Arrived Homes, all of which have been covered by TechCrunch before, seeking to democratize access to real estate investing.
Yousefi pointed out a few different aspects of Fintor that help him stand out.
First, unlike many other real estate investment platforms, Fintor operates a secondary market where individuals can place offers and request transactions on properties after properties have been listed on the platform for more than 90 days, said Yousefi.
The second differentiator Yousefi highlighted is Fintor’s focus on content promoting real estate literacy, which is specifically aimed at Gen Z and Millennials who are Fintor’s target customer base. The app provides walkthroughs and educational modules that teach users how to analyze real estate transactions, Yousefi said.
Fintor aims to remain operationally light, Yousefi said. The company outsources its property management function to an outside vendor rather than trying to do it in-house, he explained. By outsourcing property management, Fintor is able to focus solely on its core mission of making acquisitions with strong returns and splitting those assets for investors.
Yousefi added that he doesn’t mind having competitors due to the newness of the niche. He said other companies are helping Fintor with its larger mission of educating people about what fractional investing really is and that it’s available for real estate properties.
“I don’t see Arrived Homes or Landa as competitors. On the contrary, I see the stock market and the crypto market as competitors,” Yousefi said.