PeerStreet, a platform for investing in real estate-backed loans, has announced the close of a $29.5 million Series B funding round led by the Silicon Valley venture capital firm World Innovation Lab.
Existing investors Andreessen Horowitz, Thomvest, Colchis Capital, Felicis Ventures and others participated along with new investors, Solon Mack and Navitas Capital. The raise will allow PeerStreet to broaden the type of real estate loans it cultivates from its network of lenders and hire more employees.
The Series B follows a year of high growth for PeerStreet, a two-sided marketplace that connects real estate lenders with investors. The company more than doubled volume from the previous year and is on track to continue that trajectory. To date, PeerStreet has funded over $900 million in loan volume.
“We’re using the transformative potential of technology to help people access investments in real estate debt in a way never done before,” said Brett Crosby, COO and co-founder. “At the same time, our model helps lenders get more capital to deserving borrowers who are directly improving the aging US housing stock and building up communities.”
Steve Pretre, venture partner at World Innovation Lab, praised PeerStreet for creating a “more efficient and effective marketplace.”
“We believe PeerStreet’s approach of partnering with local, private real estate lenders is the optimal solution to create new liquidity for the existing real estate finance ecosystem,” said Pretre, who will be joining PeerStreet’s board. “This approach lowers the marketplace cost for loan acquisition, and, most importantly, taps into the lenders’ unique knowledge of local markets and borrowers. This directly benefits investors by lowering both marketplace costs and loan risk.”
PeerStreet is led by former real estate attorney Brew Johnson, former Google executive Brett Crosby and Y Combinator alumnus Alex Perelman.