Six months after crowdfunding platform RealtyShares went bust, another real estate firm has swooped in and acquired what remains of the once-buzzy company.
New York-based iintoo — which is also a crowdfunding company — announced Monday that it had acquired RealtyShares’ assets, saying in a statement that the purchase “catapults” it into “a market leadership position.” The acquisition also more than doubles iintoo’s portfolio size, boosting it “from $1 billion to $2.5 billion in assets under management,” the statement adds.
Eran Roth
Eran Roth, iintoo’s CEO, described the acquisition in a statement as “a watershed moment” for his company, as well as for investors and the broader industry.
Current and former investors in RealtyShares will now have access to iintoo’s crowdfunding platform.
The acquisition is also part of a joint venture between iintoo and RREAF Holdings, LLC, a private real estate firm based in Texas that will take over management responsibilities for the investment portfolio.
Financial details of the deal were not publicly disclosed.
At the time of its demise, RealtyShares was “the second largest online real estate investment platform in the U.S.,” according to iintoo. The now-defunct company launched its first equity deal in 2013, and over the ensuing years consistently made headlines for innovations such as accepting bitcoin and for raising millions in venture capital. RealtyShares allowed small-scale investors to put money into either real estate debt or equity, and investments were made via the company’s website.
RealtyShares at one time accepted investments of as little as $1,000, though its still-functioning website currently lists the minimum investment as $10,000. The company ultimately raised $870 million for over 1,100 deals, according to the Associated Press.
However, last November RealtyShares announced it was laying off staff and no longer accepting new investments. In an email to investors, it attributed the move to its inability “to secure additional capital.”
Thus far, iintoo has generated less mainstream buzz, though it too functions as a crowdfunding platform. In its case, minimum investments start at $25,000. In its statement, the company said it provides “hands-on project oversight, short-term investment periods for greater liquidity” and data-driven vetting of opportunities.
The company was founded in 2015. Iintoo’s portfolio includes multifamily properties, commercial real estate and mixed-use properties.
In its statement, iintoo said that the acquisition of RealtyShares assets propels it “into a leading position in this market category, enabling the company to accelerate its global presence in the years ahead.”
