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Real Estate Crowdfunding Continues to Increase

New data released by GowerCrowd led by Adam Gower reveals real estate crowdfunding was on the rise during the pandemic, and the number of crowdfunded deals as a percentage of all real estate transactions continues to increase. According to Gower’s research, in 2020 traditional capital-raising dropped from $51 billion to $48 billion, nearly a 6 percent decrease in activity. Alternately, during the same year, crowdfunded deals more than doubled, increasing from $7 billion in 2019 to $15 billion in 2020.

“Over the past several years, crowdfunding has grown much faster than traditional capital formation methods, posting positive gains even throughout the pandemic-induced economic downtown,” explains Gower. “Crowdfunding accounted for approximately 12 percent of all raises at the beginning of 2020, climbing to almost 25 percent by year-end. These significant figures confirm that crowdfunding is becoming a dominant factor in real estate finance, is resilient during periods of market volatility, brings liquidity when other sources of capital dry up and is a legitimate alternative to traditional sources of capital.”

This research is based on the analysis of more than 18,000 real estate projects.


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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

  • ◦Financing
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