It seems fitting that iFunding, a startup that crowdfunds real estate investments, is turning to crowdfunding to fund its own business.
The firm is currently raising $1 million on the online platform crowdfunder.com, with an eye on raising an additional $1 million in the near future. The offering values the firm at $20 million.
IFunding’s co-founder Sohin Shah told Real Estate Weekly that the firm plans to use the money to expand its business by hiring new salespeople and invest in technology and online marketing. So far, the firm has raise $330,000 of the planned $1 million.
According to the crowdfunding.com offering, iFunding raised $225,000 in July and $125,000 in October, in both cases from an unnamed investor.
New York-based IFunding, founded in 2012 by Shah and William Skelley, claims to have raised around $27 million for its projects from accredited investors. Its investments across the U.S. range from $40,000 single-family houses to multimillion-dollar developments. Originally focused on providing equity, iFunding has recently begun offering senior bridge loans. In August, the firm launched a crowdfunding app, which now accounts for 32 percent of visits to its platform.