LendingHome disclosed on Friday that it raised $70 million in new funding for its online platform which allows individuals and institutions to invest in real estate transactions.
The funding was disclosed in an SEC filing that listed Renren CEO Joseph Chen as a new director.
When the company raised a $28 million Series B round last August led by Foundation Capital. That firm's Charles Moldow was named a partner at that time, along with Ribbit Capital’s Meyer Malka.
The company has raised $103 million to date.
CEO Matthew Humphrey and President James Herbert co-founded the San Francisco-based startup two years ago to make it possible for everyone from small investors to large institutional funds to invest in real estate securities. The startup boasts of competitive rates, automated systems, transparent processes and rapid funding timelines.
The company is part of the recent growth in online marketplace lenders. This new generation of lenders is poised to take 25 percent and 30 percent of the business from "too big to fail" finance companies, growing to a $1 trillion business by 2025, according to Foundation partner Moldow.
"Traditional lending works well — for the banks," Moldow told TechFlash Silicon Valley in an interview last May.
“There are 10,000 banks in the U.S. today,” he said. “This is not your winner-take-all type market. This is a market that has room for lots of players. We are just in the very, very beginning of this.”
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