RIP RealtyShares

Hmm, I thought these guys had lots of positive publicity not too long ago. Basically, their VCs don’t want to give them more money, so they have no capital to continue operations. This seems quite worrying for other early stage companies who are not yet cash flow neutral.

To our platform investors and operating partners:

Five years ago, RealtyShares was founded with a mission to connect capital to opportunity. With over $870 million invested across more than 1,100 projects, we have built one of the top online real estate investment platforms. We’re helping investors meet their financial goals and deploying capital to real estate operating companies to execute value-add and development strategies for properties across the U.S.

As an early stage company, we have relied upon venture capital to fund our operations. Over the past six months, RealtyShares aggressively pursued a number of financing options to continue growing the business. Unfortunately, despite our best efforts, we were unable to secure additional capital. As a result, we will not offer new investments or accept new investors on the RealtyShares platform.

From this point forward, RealtyShares’ focus will be servicing our existing investors and approximately $400 million of assets under management. This transition will have no impact on the underlying real estate investments. Investments will continue to be managed and distributions will continue to be made. Investors will continue to receive asset management updates and year-end tax information.

We are committed to serving our existing investors and sponsors and have a team dedicated to supporting our ongoing operations.

The RealtyShares Team

And here it begins…

its not structural.

i haven’t read much about it my guess is the operator is incompetent. built out the infrastructure to accommodate accelerated growth which never came. probably paid too much for the acquisition & couldn’t fully integrate the platforms. with that amount of AUM, the company should be cash flow positive.

also the article is dated from early Nov.