It makes sense that a crowdfunding platform would crowdfund to raise capital for their startup. Like any other startup, those in the crowdfunding space also benefit from the increased exposure a crowdfund campaign can provide. The latest is real estate crowdfunding platform, iFunding, which successfully reached their $2 million funding goal using Crowdfunder. Of the funds, 40% of the $2 million was raised on Crowdfunder, with the rest coming from other investors.
Calling themselves the Kickstarter for real estate crowdfunding, the iFunding platform allows private investors to invest as little as $5,000 in real estate deals. Since going live in October 2013, customers have funded debt and equity deals of real estate, including land, condominiums and commercial property.
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Commenting to Crowdfunder about their crowdfunding campaign, Sohin Shah, COO and Co-Founder of iFunding, stated, “Crowdfunding definitely opened up the floodgates in terms of scaling our fundraising efforts.” He added that as the deal was a public fundraise, they were able to use different marketing mediums to drive awareness to the deal such as via their website, television, industry blogs and press releases. Shah stated, “What ultimately brought the most funding was emailing all the accredited investors in our network, which drove a big portion of the investment activity.”