InvestNext Raises $4 mln in Seed Round to Popularize Real Estate Crowdfunding

InvestNext, a Detroit-based real estate tech startup, has secured $4.3 million in Seed financing to streamline how real estate management firms raise and manage capital.

The round was led by Hyde Park Venture Partner with participation from Whitecap Venture Partners, Grand Ventures, ID Ventures, and Detroit Venture Partners. Kate Hernandez, Partner at Detroit Venture, referred to the firm’ decision to participate in the round by stating:

“InvestNext’s success is exciting but not surprising. Their investment platform’s customizable portals, turn-key fundraising, and automated distributions are drawing syndicators and investors who realize their capital can go further when they outsmart tedious work and excessive overhead.”

Founded in 2016, InvestNext has created an end-to-end platform with the mission to democratize real estate investing. The functions as a centralized source of truth that facilitates how investors engage, raise capital, report, and distribute returns, having already been adopted by over 18,000 investors across more than 1,200 funds and syndications.

Since its launch, the platform has facilitated well over $4.4 billion in transactions, as well as experiencing a growth of over 629% in customers and 452% in monthly revenue since last year. The new funding will allow the startup to boost its growth rate by expanding its team, especially those working in the design and engineering departments. Kevin Heras, Co-founder of InvestNext, said about the startup’s relevance in today’s industry:

“Real estate has historically been an inefficient capital market, inaccessible to most investors. We envision a future where ownership of the $17 trillion asset class is more evenly distributed and investors can buy and sell ownership as efficiently as they would on the stock market. This recent round of funding will allow us to accelerate product development efforts as we prepare to roll out the next phase of our platform.”

Real estate crowdfunding is quickly becoming one of the hottest ways to invest in real estate, not only allowing people who wouldn’t traditionally be able to invest in the industry to do so but also by improving how developers and real estate professionals find investment opportunities. InvestNext is looking to bring this method of investment to the masses by streamlining the investment and crowdfunding process, allowing anyone to start participating in the shaping of the future of the real estate market.