PeerStreet Marketplace Hits $3 Billion In Loans
26 Nov 2019
Approx Reading time: 3 minutes
- PeerStreet showing rapid growth and it has hit $3 billion in loans since 2015
- Peerstreet secures $60 million funding and announces $4.25 billion new capital commitments
- Growth attributed to technology and product innovation
PeerStreet has continued to show its meteoric growth with the number of loans transaction on its platform increases. As of last month, the platform had transacted over £3 billion in loans
through its PeerStreet marketplace.
Loans investment platform secures $60 million in funding
The growth of real estate backed loans investment platformcomes at the back of the company securing $60 million funding. The funds will help the firm in scaling its two-sided marketplaces as well as in hiring top talents. Also, the company announced that it had secured new capital commitments worthy of $4.25 billion
from various institutions. Private credit investment firm Colchis Capital led the funding round. Other investors who are not new to PeerStreet in the round included the World Innovation lab, Andreessen Horowitz and Thomvest Ventures. Also Read: PayPal Acquire Money-Saving Platform Honey For $4 Billion
Colchis Capital co-founder and President Ted Conrads indicated that PeerStreet had been an excellent strategic partner. For Colchis to lead the round, it was a massive milestone as an investor in loans on the platform. Further, Conrads stated that they were excited to be part of PeerStreet's immense growth in the loans marketplace.
PeerStreet seeking to exploit the potential of mortgage financial sector
This announcement shows how the real estate loan investment platform has grown exponentially since its opening in 2015. Since the launch of PeerStreet YoY, growth in loan volume has almost doubled each calendar year. However, it took the investment platform around three years to hit a billion in loans. Interestingly the second billion took only a year while it has taken around six months to hit three billion. According to PeerStreet CEO and co-founder Brew Johnson
, they are very excited about what they have achieved so far. Brew indicated that the mortgage finance sector is huge and among the most important global financial markets. As a result of PeerStreet still has a long way to way before it can fulfill its ambitions. Also, the CEO indicated that the most rewarding thing is their business model. It is because it has shown that as the company grows, it continues to create more value. It is not limited to borrowers only but also includes value for small lending businesses as well as investors. Brew expressed his confidence regarding value creation, and they anticipate maintaining the growth momentum going into the future.
Product innovation driving growth
PeerStreet's meteoric growth is a result of its product innovation and technology, as demonstrated by its proprietary platform. Several firms have shown interest on the platform, thus enabling PeerStreet to make software integrations with Betterment, Mint, and Wealthfront. At the beginning of this year, the company announced integration with various loan originator software platforms. Equally, growth has been a result of the company expanding its product offerings. It includes the long-term real estate loans through its Residential for Rent program and efficient loan document generation through PeerStreet DocGen.