Fundrise

Fundrise
Company type	Private
Industry	Financial technology, Real estate investment
Founded	January 1, 2010; 16 years ago in Washington, D.C., United States
Founder	Ben Miller, Dan Miller
Headquarters	Washington, D.C., United States
Area served	United States
Key people	Ben Miller (Co-Founder and CEO), Brandon Jenkins (COO), Alison Staloch (CFO)
Products	Digital real estate investment platform, eREITs, eFunds
Owner	Rise Companies Corp.
Number of employees	123 (2020)
Parent	Rise Companies Corp.
Website	fundrise.com

Fundrise is a financial technology firm headquartered in Washington, D.C., established in 2010, that manages a digital investment platform. It is acknowledged as the pioneer company to successfully implement crowdfunding for real estate ventures.

By the conclusion of 2019, Fundrise had facilitated roughly $1.1 billion in combined equity and debt financing, encompassing nearly $4.9 billion worth of real estate assets. The company’s operational strategy centers on granting access to real estate investment options through its platform, catering to both individual investors and institutional clients.

The leadership team includes Ben Miller as Co-Founder and CEO; Brandon Jenkins serving as COO; and Alison Staloch as CFO. Fundrise functions under its parent organization, Rise Companies Corp., reporting asset holdings valued at $5.1 billion in 2021 and employing 123 staff members as of 2020.

History

The inception of Fundrise dates back to 2010 when brothers Ben and Dan Miller founded the company, launching it in 2012 before the JOBS Act simplified equity crowdfunding regulations within the United States. Their father, Herb Miller of Western Development Corp., was responsible for developing 20 million square feet of property in Washington, D.C. Ben held the position of President at Western Development Corp. and Managing Partner at WestMill Capital Partners, while Dan occupied similar roles prior to establishing Fundrise. Initially, the platform enabled residents of D.C. to invest in local real estate developments. Its inaugural project, Maketto on H Street NE Corridor, secured $325,000 from 175 contributors with minimum investments starting at $100—marking it as the nation’s first crowdfunded real estate initiative.

Early growth

Building on its early achievements, Fundrise broadened its scope to support capital raising for commercial property developers across the country. By May 2014, the platform had attracted $15 million from over 1,000 investors. A significant achievement occurred in January 2015 when Fundrise issued bonds for the construction of 3 World Trade Center—a $1 billion endeavor—selling $2 million worth out of a $5 million bond offering at $5,000 each with a five-year term carrying a 5% tax-exempt annual yield.

During its Series A funding round, Fundrise raised $38 million—the largest amount recorded by a crowdfunding firm at that time—with Chinese social media company Renren contributing $31 million. Additional investors included Guggenheim Partners along with executives from Rockrose Development Corporation and Forest City Enterprises. By February 2015, six institutional backers had pledged over $100 million towards Fundrise’s real estate investment products. In October 2015, co-founder and president Dan Miller left the company to create Steward, an online lending platform dedicated to regenerative agriculture.

In February 2016, Fundrise dismissed its senior accountant following accusations of attempted extortion linked to alleged misconduct in two property transactions. The accountant refuted extortion allegations and claimed retaliation after reporting fraudulent activities. Fundrise denied these assertions and engaged an independent audit which found no evidence supporting the claims.

eREIT launch

On December 3, 2015, Fundrise introduced the Fundrise Real Estate Investment Trust—the first-ever online real estate investment trust or "eREIT"—with an initial offering of $50 million under Regulation A+. This eREIT permits both accredited and non-accredited investors to participate in a diversified portfolio of U.S.-based properties starting with investments as low as $1,000, utilizing technology to broaden access to real estate investing opportunities. This development was made possible by the JOBS Act’s expansion of Regulation A.

In February 2016, Fundrise unveiled a second eREIT known as the Fundrise Equity REIT. By December of that year, the Fundrise Income eREIT became the first to reach the $50 million cap allowed under Regulation A, followed shortly after by the Fundrise Growth eREIT achieving the same funding milestone.

eFund Introduction

In June 2017, Fundrise unveiled the eFund, a diversified investment portfolio targeting for-sale residential properties in key U.S. metropolitan areas, beginning with the Los Angeles eFund and an initial $50 million offering compliant with Regulation A+. Concurrently, Fundrise rolled out goal-oriented investment tools alongside an advisory platform that included the sector’s inaugural robo-advisor tailored specifically for real estate investments.

Amazon HQ2 Initiative

Prior to Amazon's HQ2 announcement in 2018, Fundrise purchased thirty residential units within the Washington, D.C. region. Following this, the company launched the HQ2 DC eFund, aiming to allocate up to $50 million toward residential real estate acquisitions across Washington, D.C.

Developments in 2021

In 2021, Fundrise obtained a $300 million credit facility from Goldman Sachs to accelerate its investments in developing single family homes throughout the Sun Belt, strengthening its footprint in the single-family rental sector.

Awards

Fundrise earned recognition on the Forbes Fintech 50 list in 2015, 2016, 2017, and 2019. Additionally, in 2018, it achieved the 35th position overall and topped the financial services category on the Inc. 5000 list, underscoring its robust financial results and industry impact.

External links

Fundrise official website