GROUNDFLOOR Ranks In The Top 10 Percent Of Inc. Magazine’s List Of Fastest Growing Private Companies
GROUNDFLOOR, the wealthtech platform that allows everyone to build wealth through real estate, is being recognized as one of the fastest growing private companies in the United States. With its debut onto the prestigious Inc. 5000 list, GROUNDFLOOR is listed in the top 10 percent overall at no. 402 with three-year revenue growth of 1,141 percent. The company is also listed as the fastest growing financial services company in Georgia and 22nd amongst all financial services companies nationwide.
GROUNDFLOOR was founded in 2013 by Brian Dally and Nick Bhargava with a vision to open private capital markets to everyone, with as little as $10 to start. It subsequently became the first company qualified by the Securities and Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Seven years later, GROUNDFLOOR has more than 80,000 registered users who have invested more than $270 million into over 1,750 real estate notes. The company has repaid more than 1,000 notes for over $140 million, delivering investors a 10.6 percent average annualized return1.
“When we came up with the idea for GROUNDFLOOR, we knew we were not just building a new company, but also creating a new product, in a new category, for a brand new audience,” said co-founder and CEO Brian Dally. “The momentum of investor adoption continues to build as we navigate every obstacle of finance-as-usual, and we’re extremely excited to be recognized as one of the fastest growing private companies in the country.”
Despite the onset of COVID-19 and limitations on its lending operations due to decreased economic activity nationwide, GROUNDFLOOR’s investment platform continues to grow in 2020, indicating investor confidence in the company’s products as a viable alternative to public investment options. GROUNDFLOOR is also now ramping its lending operations back to pre-COVID levels and standards to grow its inventory of future LROs. Recent growth metrics include:
- A quarterly record in Q2 of $33.3 million in LRO (“Limited Recourse Obligation” – the company’s primary investment security) and GROUNDFLOOR Notes investments. This was a 24 percent increase compared to Q1 2020 and a 48 percent increase compared to the same period in 2019.
- Repayment of $12.2 million for loans on 88 properties in Q2, representing a slight increase over Q1 repayment unit and dollar volume despite the impact of COVID-19.
- Three consecutive monthly records for total investment volume across all note products in May, June and July, at $11.4M, $12.0M and $15.5 M respectively.
- Raising $1.7M in equity capital during a six-week period through SeedInvest, bringing its public ownership to over 22 percent and more than 3,771 individual shareholders.
- New functionality to improve the investor experience including an Investment Wizard, which matches currently funding loans to a self-selected profile that investors can adjust to better diversify their portfolios and more easily understand the power of diversification in generating more predictable returns on investments.
- In addition to being named in the top 10 percent on the Inc. 5000, GROUNDFLOOR has been recognized this year in the following awards: the Technology Association of Georgia’s Top 10 Companies, the HousingWire Tech 100, the Atlanta Business Chronicle Pacesetters and as a finalist for two Benzinga Fintech Awards – Best Lending Platform and Best Alternative Investments Platform.
Anyone can open a free investor account by visiting GROUNDFLOOR.com. The process takes a matter of minutes, and once a bank account is linked, an investor can start investing in loans that have pre-funded various real estate projects. No prior real estate knowledge is needed and the $10 minimum is an intentionally low barrier to diversification, giving everyone the ability to build wealth in real estate while controlling their exposure to risk. Borrowers seeking lending capital can also apply online to fund one or several projects at a time.
Founded in 2013, GROUNDFLOOR opens private capital markets to all. GROUNDFLOOR was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Today, it remains the only product offering everyone the ability to build fully customizable real estate debt portfolios for short-term, high-yield returns. The company is headquartered in Atlanta and has raised $23.7 million in equity capital from a variety of sources, including venture capital and online public equity offerings. As of its most recent round of financing in 2019, the company is 22 percent customer-owned.
1 Average annual return based on all loans repaid from 3/2014 to 3/2020.