Patch of Land, a crowdfunding solution for real estate financing, announced today that it has raised $23.6 million in financing.
The oversubscribed Series A round was led by SF Capital Group, a private investment firm focused on direct equity and debt investments in the financial technology space.
Neil Wolfson, President of SF Capital Group will also join the Board of Directors of Patch of Land. Ron Suber, president of Prosper Marketplace, an online marketplace for consumer credit, also participated in the Series A round as a strategic investor.
“We are very pleased to have completed this round of financing,” said Jason Fritton, co-founder and CEO of Patch of Land.
“We look forward to working with SF Capital Group and welcome Neil to our board. Our ability to attract sophisticated investors such as SF Capital and industry thought leaders like Ron Suber clearly validates the strength of our business model. Neil and Ron understand marketplace lending and their collective advice and network of contacts will be integral to our continued growth and success.”
As one of the biggest issuers, by volume, of 506(c) real estate debt investments, Patch of Land will use the capital from the Series A financing to aggressively increase its market share and further expand the company’s leadership position through additional investment in the technology and data systems that power the marketplace. The company will also utilize these funds to hire additional leading real estate and technology professionals.
“The real estate lending marketplace is quickly transforming the way investors and developers interact, and Patch of Land is at the forefront of this change,” said Neil Wolfson, President of SF Capital Group.
“Patch of Land was one of the first companies to focus exclusively on real estate debt investments and the first to offer prefunded loans, which dramatically shortens the time developers wait to get funded. The company is a true pioneer within this industry and its consistent and steady focus is clearly evident through the rapid growth of its portfolio. We are excited to work with this dynamic team and help them capture the tremendous opportunity they have identified.”
“I have witnessed first-hand the emergence and growth of marketplace lending. Real estate is one of the fastest growing verticals within all of marketplace lending, and Patch of Land has emerged as one of the most disruptive and innovative companies,” said Ron Suber. “I am very excited to help the company reach the next stage in its growth cycle.”
For over a year, Patch of Land has consistently grown its portfolio of short-term residential and commercial loans to qualified borrowers across America, quickly earning its place as one of the top real estate crowdfunding companies to launch since the JOBS Act was passed into law.