InvestNext, a Detroit-based real estate investment technology company, has closed a $4.3 million seed round.
The funding round was led by Hyde Park Venture Partners in Chicago and joined by Detroit Venture Partners, Whitecap Venture Partners, Grand Ventures, and ID Ventures.
InvestNext has developed an end-to-end platform that streamlines how real estate investment firms raise and manage capital.
“Real estate has historically been an inefficient capital market, inaccessible to most investors,” says Kevin Heras, co-founder of InvestNext. “We envision a future where ownership of the $17 trillion asset class is more evenly distributed, and investors can buy and sell ownership as efficiently as they would on the stock market. This recent round of funding will allow us to accelerate product development efforts as we prepare to roll out the next phase of our platform.”
The funding round comes as InvestNext reports a 629 percent increase in customers and 452 percent increase in monthly recurring revenue since last year.
“InvestNext’s success is exciting but not surprising,” says Kate Hernandez, a partner at Detroit Venture Partners. “Their investment platform’s customizable portals, turn-key fundraising, and automated distributions are drawing syndicators and investors who realize their capital can go further when they outsmart tedious work and excessive overhead.”
InvestNext currently has more than 18,000 active investors across more than 1,200 funds and syndications on its platform. To date the company has facilitated over $4.4 billion in transactions.
“InvestNext checked all the boxes for what we needed in an investment portal,” says Tait Duryea, CEO of Turbine Capital. “What we were looking for was a secure, U.S.-based, full-service suite of fundraising and administration capabilities with a smooth, simple, and intuitive user interface for our clients. Above all, InvestNext brings a new level of sophistication to our business and greatly improves the customer experience.”
InvestNext currently is adding headcount, especially within its design and engineering teams.
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