Concreit, a company that wants to open real estate investing to a broader group of people, announced today that it has closed $6 million in a seed funding round led by Matrix Partners.
Hyphen Capital also participated in the round, in addition to individual investors such as Betterment founder and CEO Jon Stein; Andy Liu, partner at Unlock Venture Partners; and investor and advisor Ben Elowitz. Concreit raised the capital at a $22.5 million post-money valuation.
The Seattle-based startup also today launched its app, which it claims allows “anyone” to invest in the global private real estate market for as little as $1.
It’s a lofty claim. But first let’s start with some background.
Concreit is not the first time that co-founders Sean Hsieh and Jordan Levy have worked together. The pair previously founded and bootstrapped VoIP communications platform Flowroute before selling it to West Corp. in 2018. Upon the sale of that company, Hsieh and Levy set out to build a company that, in their words, “could help everyday people become more financially secure.”
Hsieh, a second-generation immigrant, worked in his family’s restaurant where they shared the dream of achieving financial freedom through real estate. Similarly, Levy says he grew up watching his parents build a small construction business from scratch. He was intrigued by the idea of passive income through single-family rental homes but became disillusioned with the overhead, risk and hassle of managing one’s own single-family rental investments.
So the duo worked together to design a (Read more...)