Patch of Land, a real estate peer-to-peer lending platform, has raised $23.6 million in a Series A financing round.
The oversubscribed round was led by SF Capital Group, a private investment firm focused on direct equity and debt investments in the financial technology space. Neil Wolfson, President of SF Capital Group will also join the Board of Directors of Patch of Land.
Jason Fritton, co-founder and CEO of Patch of Land, commented:
“We are very pleased to have completed this round of financing. We look forward to working with SF Capital Group and welcome Neil to our board. Our ability to attract sophisticated investors such as SF Capital and industry thought leaders like Ron Suber clearly validates the strength of our business model. Neil and Ron understand marketplace lending and their collective advice and network of contacts will be integral to our continued growth and success.”
The platform is planning on using the capital from the round to aggressively increase its market share and further expand the company’s leadership position through additional investment in the technology and data systems that power the marketplace. Additionally the company will use the funds to expand its team by hiring more leading real estate and technology professionals.
Neil Wolfson, President of SF Capital Group, added:
“The real estate lending marketplace is quickly transforming the way investors and developers interact, and Patch of Land is at the forefront of this change. Patch of Land was one of the first companies to focus exclusively on real estate debt investments and the first to offer prefunded loans, which dramatically shortens the time developers wait to get funded. The company is a true pioneer within this industry and its consistent and steady focus is clearly evident through the rapid growth of its portfolio. We are excited to work with this dynamic team and help them capture the tremendous opportunity they have identified.”
“I have witnessed first-hand the emergence and growth of marketplace lending. Real estate is one of the fastest growing verticals within all of marketplace lending, and Patch of Land has emerged as one of the most disruptive and innovative companies. I am very excited to help the company reach the next stage in its growth cycle.”
Patch of Land is one of the biggest issuers, by volume, of 506(c) real estate debt investments. The company has grown its portfolio of short-term residential and commercial loans over the past year. Patch of Land has a slightly different model to its rivals. It prefunds the loans on its platform and then offers it to the investors through the platform. And so having the funds from this fundraising round will be invaluable for expanding its business.