Blockchain-powered real estate platform RealBlocks has raised $3.1 million in a seed funding round led by Science Inc. Morgan Creek Digital, Zelkova Ventures, Ulu Ventures, and Cross Culture Ventures also participated in the round.
RealBlocks is a real estate capital markets platform that connects users globally and allows them to raise capital for real estate. Utilizing the ethereum blockchain, the platform tokenizes shares of private equity funds, which allows real estate sponsors to sell shares to both domestic and international investors, accept digital and fiat currency, and enable peer-to-peer trading via a bulletin board.
Perrin Quarshie, Founder and CEO of RealBlocks, said that the funding will be used to accelerate the development of their product and adoption of blockchain technology for real estate.
“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,” Quarshie said.
According to the company, its platform would provide investors with three key benefits, including simpler and more efficient access for investors outside of the US, access to offerings from some of the best private equity funds in the world, and 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,” the company said. “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.”
Science Inc., who has invested in companies leveraging blockchain technology to enhance and revolutionize how brands do business, said that they invested in RealBlocks because this use of blockchain technology has real-world benefits that perfectly align with their investment model.
“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,” said Greg Gilman, co-founder and Managing Director of Science Inc.
Anthony Pompliano, Founder & Partner at Morgan Creek Digital, said that RealBlocks is one of the teams that has a working product and has shown they can execute at a high level.
“One of our core theses at Morgan Creek Digital has been that every stock, bond, currency, and commodity will be tokenized at some point in the future,” Pompliano said. “RealBlocks has developed a solution that is going to help the best players in the real estate industry join the blockchain revolution.”
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