EquityMultiple

EquityMultiple enables individuals to seamlessly invest in apartments, industrial properties, hotels, and other cash flow-oriented real estate.

Starting with just $5k, investors can participate as owners or lenders and receive their portion of rent and appreciation or interest. All without the work typically involved in owning real estate.

To date, we have built a network of over 50,000 investors who have invested more than $600M into over $5 billion of commercial real estate.

While competitors have struggled due to higher interest rates and lower real estate sales volume, we continue to grow revenue year-over-year and hit $9.9M in 2024. In October, we closed a strategic investment from Marcus & Millichap, the largest public real estate firm focused on investment sales, financing, research, and advisory services. The partnership provides us with access to potential investment opportunities from their nearly 2000 brokers across over 80 offices nationally.

Why Now and Why WeFunder

We believe the next three years will provide a once-in-an-economic-cycle opportunity in real estate and a unique opportunity to be the leader in the growing category of online real estate investing. Rising interest rates are driving down commercial real estate values, creating strong conditions for investment. Simultaneously, our industry is consolidating, and we believe there will be an opportunity to acquire competitors or their customers.

After closing an investment from Marcus & Millichap, we knew we wanted to offer a community round to our customers, existing investors, and the broader WeFunder community. We believe in the democratization of investing and that private markets like real estate and venture capital should be open to the public. In addition to the Marcus & Millichap investment, we previously raised $8M+ in 2022 and '23, and are offering the same terms despite improved financial performance and the validating investment from a public company.

How We Operate

Through our platform, we offer a range of real estate-backed investment options, letting investors build their own diversified portfolios to meet their individual investment goals.

Each investment is vetted by our in-house team of experienced real estate professionals, most of whom come from institutional investment firms. Investors can select individual properties or diversified strategies.

Investors can also diversify across a range of property types and in growing markets across the country.

Our Company Growth

To date, our customers have invested over $600M through EquityMultiple. Over 70% of our customers have invested multiple times and on average each customer has invested over 5.5 times and over $140K each, driving a high value per customer.

Despite overall commercial real estate volume falling dramatically in the second half of 2022 and into 2023, we saw 70% more investment in 2022 vs. 2021 and 22% more investment in 2023 vs. 20

21. We continued to grow revenue and saw a 24% increase in gross profit in 2023 and 63% improvement to net income.

New Products and Partnerships

We believe innovation and partnerships are two keys to our success. In late 2021 we launched Alpine Notes - a unique short-term investment option backed by a diversified pool of real estate. Since its launch our members have invested over $[ ] into Alpine Notes. In September 2023 we launched the Ascent Income Fund, a diversified investment option focused on real estate lending in today's high interest rate environment. The Fund made $19.5M of investments in its first two months and continues to draw in new investors each month.

In Q4 2023 we closed a strategic investment from Marcus & Millichap (NYSE: MMI). The unique partnership can help us accelerate growth leveraging the unique reach of their national organization.

Our Revenue Model

By providing services across the lifetime of each investment, we earn revenue at all stages of investment:

• Upfront Fees - Each time a transaction closes on our platform
• Ongoing Fees - From servicing investments through the term
• Incentive Fees - Share of profits from successful investments

Our Team

Our team is built to take EquityMultiple to the next level. We bring together decades of large company experience in real estate, banking, law, technology and marketing.

What's Next

We believe everyone should have access to real estate and other alternative investments. Our strategic partnership with Marcus & Millichap is focused on helping us expand the number of investments on our platform and grow our investor base more rapidly. We believe the next three years will provide a unique opportunity to solidify a market-leading position through growth and industry consolidation while pushing into profitability.