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
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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