RealBlocks, the technology platform powered by the blockchain that allows for seamless fundraising and investing in real estate, announces that it has closed a $3.1M seed round led by Science Inc. with participation from Morgan Creek Digital, Zelkova Ventures, Ulu Ventures, and Cross Culture Ventures.
The RealBlocks solution takes a unique approach to fundraising for real estate by providing users access to private equity and allowing them to tokenize shares of some of the best funds in the world. By using a proprietary blockchain-based subscription process, RealBlocks enables tremendous efficiency and access allowing investors worldwide to directly purchase micro-shares in funds using either fiat currency (i.e. USD) or cryptocurrency.
“With the support of our strategic investors, we’re accelerating development of our product and adoption of blockchain technology for real estate, an industry that previously hasn’t seen much innovation,” said Perrin Quarshie, Founder and CEO of RealBlocks. “This is a great opportunity to improve the investment experience for both sponsors and investors while also minimizing friction throughout the entirety of the process.”
The blockchain platform itself provides a few key benefits for investors and users.
- Global Access: Through utilizing blockchain infrastructure for distribution, RealBlocks allows for simpler and more efficient access for investors outside of the US, thereby accelerating capital formation for real estate sponsors.
- Institutional Real Estate: Investors on the RealBlocks platform will have access to offerings from some of the best private equity funds in the world, usually this cannot be obtained elsewhere.
- Instant Liquidity: Unlike traditional banks, RealBlocks will allow access to instant liquidity for funding and investments. Through the use of its bulletin board, RealBlocks provides investors with a mechanism for obtaining liquidity via peer-to-peer trading for an otherwise illiquid asset class.
RealBlocks investors receive an asset-backed token or share that represents ownership of an offering. Users have the ability to trade their ownership via a peer-to-peer bulletin board with investors across the globe. RealBlocks is helping to usher in the token economy, and real estate is just one of the many industries that will benefit from the tokenization of assets.
RealBlocks is supported by Science Blockchain, who has supported and invested in companies leveraging blockchain technology to enhance and revolutionize how brands do business.
“We invested in RealBlocks because this use of blockchain technology has real-world benefits that perfectly align with our investment model,” said Greg Gilman, co-founder and Managing Director of Science Inc. “We believe that the real estate market, like nearly all asset classes, will be increasingly data-driven and digitized or digitally native, and we look forward to building on our history of transformative companies.”