GROUNDFLOOR Makes Inc.’s Top 5,000 List
Atlanta-based wealthtech platform GROUNDFLOOR debuts as #402 on Inc.’s list of 5,000 high-growth companies.
GROUNDFLOOR has experienced three-year revenue growth of 1,141%, and it continues to see record investor growth in 2020. The company is also listed as the fastest growing financial services company in Georgia and 22nd among all financial services companies nationwide.
Brian Dally and Nick Bhargava founded GROUNDFLOOR in 2013. Their vision was to open private capital markets to everyone, with as little as $10 to start. GROUNDFLOOR became the first company qualified by the Securities and Exchange Commission to offer direct real estate debt investments via Regulation A for both non-accredited and accredited investors.
The company now has more than 80,000 registered users who have invested more than $270 million into over 1,750 real estate notes. The company has repaid more than 1,000 notes for over $140 million, delivering investors a 10.6 percent average annualized return1.
“When we came up with the idea for GROUNDFLOOR, we knew we were not just building a new company, but also creating a new product, in a new category, for a brand new audience,” Dally said. “The momentum of investor adoption continues to build as we navigate every obstacle of finance-as-usual, and we’re extremely excited to be recognized as one of the fastest growing private companies in the country.”
GROUNDFLOOR’s 2020 growth has occurred in several areas. It hit a quarterly record in the second quarter with $33.3 million in Limited Recourse Obligation and GROUNDFLOOR Notes investments, a 24% increase over first quarter 2020 and a 48% increase compared to the same period in 2019. It also set three consecutive monthly records for total investment volume across all note products in May ($11.4 million), June ($12 million) and July ($15.5 million).
The company also saw a repayment of $12.2 million for loans on 88 properties in the second quarter of 2020, representing a slight increase over first quarter repayment unit and dollar volume, despite the impact of COVID-19.
During a six-week period this year, GROUNDFLOOR has raised $1.7 million in equity capital through SeedInvest, bringing its public ownership to more than 22 percent and more than 3,771 individual shareholders.
The company has also added new functionality to improve the investor experience, including an Investment Wizard, designed to match currently funding loans to a self-selected profile that investors can adjust to better diversify their portfolios and more easily understand the power of diversification in generating more predictable returns on investments.
