Coromandel Capital has announced that it will be providing $25 million for a senior secured credit facility to Nectar, which gives cash flow financing for real estate entrepreneurs, a press release said Monday (Sept. 5).
Nectar will use this to help short-term rental operators get advances on future revenue. This will finance renovations, remodels and down payments.
“Nectar is committed to building a better solution for short-term rental entrepreneurs who are ready to scale. This deal with Coromandel Capital will help us fund more of those entrepreneurs in our pipeline,” said Derrick Barker, co-founder and CEO at Nectar.
Luke Powell, co-founder and managing partner at Coromandel Capital, said the company believes Nectar “is providing a much-needed service to owners and operators in the short-term rental market.”
Meanwhile, venture capital firms have been getting back into crypto, with investments having declined amid the troubles with crypto earlier in the year, PYMNTS reported.
Read more: Crypto Winter Begins to Thaw as VCs Re-Enter Market With Scaled-Back Bets
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The report notes that the firms focused on the sector have raised billions even in spite of the decline
Crypto investor David Pakman has launched CoinFund recently, which will be a $300 million venture capital fund working on Web3 projects. That could be seen as a sign of confidence for an industry that has still been stuck in a rut lately.
But while retail crypto investors have been fleeing or hibernating while bitcoin and other cryptocurrencies declined, venture investors have not pulled back. Some big new funds, like the $4.5 billion one from Andreessen Horowitz, have been formed recently, which had $3 billion earmarked for venture investments, and the rest for seed funding.
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