Drawing a crowd: FinTech meets real estate investment
Real estate crowdfunding has emerged as a fast-growing segment of the global crowdfunding market, accounting for $7.8 billion, or 5.4 percent, of the $145.3 billion total volume of capital raised in 2015. China, the United States and the United Kingdom dominate, together accounting for 98.2 percent of global crowdfunding volume and 99.0 percent of all real estate crowdfunding. At $5.50 billion, China represented the largest market by volume in 2015, followed by the United States ($1.25 billion) and the United Kingdom ($1.06 billion).
Although still rather small in scale when compared with the $760 billion invested in commercial real estate over the same period, real estate crowdfunding has the potential to transform how commercial real estate is capitalized. Real estate crowdfunding platforms have brought the merits of real estate investing to the attention of the masses and, in doing so, have tapped unmet investor appetite from high-net-worth individuals and retail investors