Chances are, you’ve had a crowdfunding experience—even if you didn’t realize it. Whether you gave $5 to fund the efforts of a small entrepreneur or $50 to support a friend struggling with medical bills, you have seen the power of small cash contributions from a large group of people.
It didn’t take long for people to recognize the impact that the crowdfunding mentality can have in the business world. In 2015, crowd-investing platforms—which enable people to collectively fund a project in the hopes of good returns—generated $2.1 billion in investments. That figure is expected to nearly double this year.
In the real estate space, Washington D.C.-based Fundrise has been well ahead of the crowdfunding curve. In the latest issue of Knowledge Leader, we sat down with Fundrise COO Brandon Jenkins to learn more about the company dedicated to providing people with the opportunity to make low-cost, direct investments in high-quality real estate projects.
Jenkins shares that the company founders recognized the fact that it was very challenging for individuals to invest in real estate deals. They quickly found a way to meet that challenge, and the company now boasts more than 100,000 members and has invested in nearly $3 billion worth of real estate.
Fundrise points to the impact of the scale that can be achieved through a Web-based platform, making it easy to engage tens of thousands of individual investors every day. As Jenkins points out, “it’s not crazy to imagine in a few years people investing in real estate through Fundrise as easily as people buy stocks on E*Trade.”
To learn more about Fundrise’s views on investment trends and the future of crowdfunding, download the Fall 2016 Knowledge Leader magazine.