Fundrise, a platform that allows online investors to put money into its real estate funds, has now allowed its members to own shares of the company itself.
The company raised $14.6M in what it called an "internet public offering," outpacing its $10M goal for the 24-hour period. More than 2,300 members participated in the iPO.
This move, which will not put Fundrise on a public stock exchange, allows its members to invest at an earlier stage in the company's growth than when typical IPOs take place. The method of selling its shares directly to its members, rather than going through an investment bank, was made legal by the 2012 Jumpstart Our Business Startups Act.
“We’ve made our users partners in our future and we look forward to sharing in our success together,” Fundrise CEO Ben Miller said in a release. “Just like Vanguard, we believe The Fundrise iPO aligns our interests with our users, which means we won’t have to weigh what's best for our owners vs. our customers, because they are now one and the same.”
Fundrise last summer launched a partnership with DC-based Insight Property Group to invest $200M annually in DC-area real estate.
