PeerStreet, the financial technology startup, raised $15 million in a venture capital funding round led by Andreessen Horowitz.
According to a report, as part of the round of funding, Andreessen Horowitz will also join the board of PeerStreet. The latest round of funding came a little more than year since the platform was launched. Since it came online, it has originated greater than $165 million in loans, noted the report.
Other investors to take part in the round of fundraising included Rembrandt Venture Partners, Montage Ventures and nonprofit The Kaiser Family Foundation. The startup plans to use the capital to enhance its technology. Existing investors in the company include the former CEO of Wealthfront, Adam Nash, and hedge fund manager Michael Burry.
PeerStreet is a financial platform that enables accredited investors to take part in high-yield real estate loans with as little as $1,000.
When PeerStreet first came online, getting in on the service was available by invitation only. During its pre-launch phase, PeerStreet funded more than $35 million in real estate loans secured by 78 properties, putting the company on a path to outpace the growth patterns of many of the most successful consumer debt investment platforms. The annualized net yield to investors has ranged between 7 percent and 12 percent.
“With the launch of PeerStreet, we are democratizing a fantastic asset class — real estate debt — that has always existed but has been extremely difficult for most investors to access,” said Brew Johnson, CEO and cofounder of PeerStreet, at the time. “PeerStreet is unique in that our loans are sourced from a nationwide network of professional loan originators, which gives us the ability to scale while providing investors access to the highest quality loans.”