Crowdfund Insider obtained a tip this previous week that actual property crowdfunding platform AssetAvenue has stopped originating loans. Emails to the corporate haven’t been returned, and repeated makes an attempt to contact AssetAvenue by cellphone haven’t been profitable. Parts of the AssetAvenue website now generate a 404. AssetAvenue social accounts have not been updated in months. A post on BiggerPockets from a number of months again indicated that a potential borrower had been advised they had been no doing any funding.
AssetAvenue was backed by some prime VC corporations, together with DCM Ventures, Matrix Companions, and NetEase Capital. The corporate raised $11 million in a Collection A funding spherical in early 2015. The Los Angeles-based on-line market focused small property loans of as much as $2 million – primarily fix-n-flip or residential bridge loans. Buyers included personal people in addition to household workplaces and establishments.
Crowdfund Insider spoke to an trade participant who stated they understood that deal stream had been difficult at AssetAvenue. The underwriting course of was additionally stated to be too extremely automated, one thing that didn’t mesh nicely with the kind of offers being listed on the platform that demanded extra customization. The actual property crowdfunding trade could also be going by way of a interval of consolidation the place the better-capitalized platforms, with deep actual property expertise, will fare higher.