Landa Secures $25 million in Series A funding designated to its inclusive real estate investment program
This startup founded in Israel allows individuals to invest in real estate with as little as $5 using a fractional ownership model
Real estate investment startup, Landa, which was founded in Israel on Wednesday announced successfully raising $25 million in Series A funding round. This development in addition to the raised $8 million in previous rounds raises Landa’s total equity to $33 million. The company had previously secured $62 million for debt financing.
Landa offers a fractional ownership model which allows individuals to invest in real estate with as little as $5. The recent $25 million fundraising was spearheaded by 83North, NFX and Viola Ventures.
Real estate investment remains one of the most reliable and profitable investments for both small time and big time investors. However, in recent years home ownership has become a tad more difficult due to inconsistent and harsh economic realities. Landa seeks to address this anomaly by tackling the barriers limiting potential real estate investors. Landa has successfully onboarded about 22,000 investors on its app, holding more than 400 units in seven real estate markets.
Landa’s cofounders, Amit Assaraf, and Yishai Cohen who also doubled as the company’s CEO are leveraging on the intense desire of most people to invest in the very lucrative real estate, especially those who are not opportune due to economic difficulties. According to Assaraf; “Landa makes it easy to invest in individual properties and fully manage your portfolio from a smartphone “.
Landa’s mechanism allows investors monitor their portfolios through an interface that allows them to check properties, and purchase shares with ease. The platform also offers valuable training by supplying free educational tools which equips investors with knowledge about real estate and how to set up smart portfolios. Landa’s investment procedure includes security and maintenance of property for tenants. The platform also handles the major investment tasks and obligations involved from screening & purchasing properties, maintenance requests to rent collection and other management logistics.
Landa’s property portfolio are in Atlanta and New York and there are plans to launch in Birmingham, Charlotte, Jacksonville, Orlando and Tampa.
Gigi Levy-Weiss, general partner from NFX finds the rising prices, and ridiculous interest rates a major obstacle hampering real estate investment for a higher majority. With Landa’s vision, hundreds of millions of potential real estate investors can be empowered to gain access to very lucrative properties with as little as $5.