LOS ANGELES—Real estate crowdfunding platfiorm Patch of Land said Wednesday 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 sector, whose president, Neil Wolfson, will also join Patch of Land's board. Ron Suber, president of Prosper Marketplace, a leading online marketplace for consumer credit, also participated in the Series A round as a strategic investor.
“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,” says Jason Fritton, co-founder and CEO of Patch of Land. “Neil and Ron understand marketplace lending and their collective advice and network of contacts will be integral to our continued growth and success.”
Wolfson observes that 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. He adds that the company, launched soon after passage of the JOBS Act that gave rise to crowdfunding, 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.”
Patch of Land will use the capital from the Series A financing to increase its market share by making additional investment in the technology and data systems that power the marketplace. The company will also utilize the funds to hire additional real estate and technology professionals.
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