Publications

- December 1, 2015: Vol. 2, Number 12

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Inside the Numbers: Are real estate tech platforms growing with or ahead of the industry at large?

by Olga Koroleva

In October the SEC finally approved crowdfunding rules. Every real estate professional can now raise up to $1 million annually from non-accredited investors. The average private deal that my company tracks is $12 million. Is it reasonable to assume that a sponsor could put together three to five middle-market deals a year? Then would a $1 million crowdfunding cap make any sense for a $50 million annual deal flow? Would this new rule approval make any difference for the commercial real estate industry? Let’s take a closer look at the data.

The explosive growth of crowdfunding within the real estate sector due to the changes brought by the JOBs Act together with recent significant high-profile investments in real estate crowdfunding platforms has drawn much attention to new online models for accessing and investing in the asset class.

In a historical context, JOBS Act changes represent an extension of the evolution and innovation of real estate capital market

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