CREXi seeded with $4.3M, becomes latest real estate platform to launch
February 29, 2016
CREXi has launched its commercial real estate platform for brokers, buyers and sellers. The company has also raised a $4.3 million seed funding from investors including Lerer Hippeau Ventures and Founder Collective. The platform is a marketplace designed to simplify transactions with a suite of tools for managing the entire real estate process from listing to closing. In less than three months in limited beta, CREXi attracted almost 200 properties valued at nearly $1 billion.
Real estate has become the new battlefront in venture capital. Last week alone, four real-estate-focused companies received funding, including RealtyShares ($20 million), NoBroker ($10 million) and Real ($6 million). The market has exploded the past two years, with more than $1.7 billion of VC invested in each, according to the PitchBook Platform. Prior to 2013, no more than $452 million had been invested in the space during any single year; so far in 2016, almost $420 million of VC has made its way to real estate platforms.
Many of the sites receiving funding were designed as marketplaces that help brokers and sellers manage their listings and help buyers find properties that fit their needs, all from the comfort of a home or office. Platforms that allow users to invest in more diverse real estate portfolios have been another popular business model to receive VC funding. Sites such as Realty Mogul ($63 million in total funding) and Fundrise ($40 million) are providing the opportunity for users to put money into real estate through crowdfunded and managed investment vehicles.