# EquityMultiple

Fractional Real Estate Investing With $9.9M in Annual Revenue

## Elevator pitch
We build investor wealth through streamlined access to diverse real estate investment products.

- Canonical URL: https://wefunder.com/equitymultiple
- Entity ID: wefunder:company:104227
- Last updated: 2026-06-12T05:00:41Z
- Generated at: 2026-06-13T03:50:32Z

## Quick facts
- 60% revenue CAGR 2018 to 2022
- Over $170M in transaction volume in 2022
- $10M in LTM Revenue (November 2023)
- 1st-in-the-industry corporate partnership & investment from Marcus & Millichap ($1.5B+ Market cap)
- Backed by Founder of Knight Trading ($5B+ market cap)
- $22M+ previously raised, including $1.4M from Wefunder in Q1 2023
- 75% growth in total amount invested per customer over 5 years
- Inc. listed our company in their 5000 Fastest-Growing Private Companies in America 2021 and 2022

## Active fundraises
- wefunder:fundraise:103753: 4(a)(6) successful (USD)
- wefunder:fundraise:103752: 4(a)(6) successful (USD)
- wefunder:fundraise:55413: 4(a)(6) successful (USD)
- wefunder:fundraise:57994: 4(a)(6) successful (USD)

## Story
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 WeFunderWe 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 OperateThrough 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 GrowthTo 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. 2021. We continued to grow revenue and saw a 24% increase in gross profit in 2023 and 63% improvement to net income.New Products and PartnershipsWe 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 ModelBy 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 platformOngoing Fees - From servicing investments through the termIncentive Fees - Share of profits from successful investmentsOur TeamOur 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 NextWe 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.

## FAQ
1. **Is this available for IRA’s through Forge Trust?**
   - We'll need to reach out to WeFunder to get an answer on this.
2. **What did the previous round value the company at?**
   - Our prior round was ~32M post money and closed in 2020. As context, the valuation growth is directly proportionate to our revenue growth. Our revenue in 2020 in was ~$4.2M vs ~$10.1M from midyear 2021 to mid-year 2022.
3. **Is there an exit strategy in mind?**
   - We would like to produce some of liquidity in 3-5 years or less. I believe sale or majority investment that produces partial liquidity is the most likely path given where the market and industry stand today. While there has not yet been meaningful M&A in the sector, growth has ballooned in the last 2-3 years against all types of online alternative investing (and online investing more broadly) and the interest of larger incumbent players in retail investors is growing with it. Ultimately, ...
4. **Hi I have a few questions. First, I just want to make sure I understand the valuation / math: So the previous priced round was $4.8M which given your statement below that post-money valuation was $32M, that's a roughly $27M pre-money valuation which equates to 6x-7x revenue mu...**
   - Hi Ray - You're thinking about it the right way. The $75M is a post-money valuation cap so it also represents around a 6.5X revenue multiple on a pre-money basis. While you will frequently see significantly higher revenue multiples, our goal was to price the this round and our prior round comparably and provide upside for investors if we're able to achieve higher multiples on future funding. It is also the same valuation that our other investors received, including the initial lead. In terms ...
5. **Currently, only accredited investors have access to the investments. Is opening to non-accredited investors a possibility in the future?**
   - Hi Brad - yes, we are planning to expand to non-accredited investors in the future. As we begin to roll out more diversified investment options, we will be able to expand to non-accredited investors.

## Team
- Charles Clinton (CEO)
- Marious Sjulsen (Chief Investment Officer)
- Peter Shankar (Chief Technology Officer)
- Soren Godbersen (Chief Growth Officer)
- Dan Melaugh (EVP, Real Estate)
- Henry Kwong (Managing Director, Asset Management)
- Michael Stern (CFO)

## Q&A
- Q: Hi I have a few questions. First, I just want to make sure I understand the valuation / math: So the previous priced round was $4.8M which given your statement below that post-money valuation was $32M, that's a roughly $27M pre-money valuation which equates to 6x-7x revenue multiple. This current round, using that $10.1M LTM revenue prices out at a valuation cap of $75M which is almost 7x. Do I have that right? AndIs this the same valuation cap that was agreed to by the lead investors that provided the first $6.5B of this SAFE note? Separately, how much do you need to raise in the SAFE note before you convert it in a fully priced round? And will there be potentially a different lead investor, and upsize, of the round (meaning, are you raising all the capital now in the SAFE note, and doing it that way gets you cash quicker while you go through all the legalese of a priced round, or is the SAFE note a prelude to a bigger priced round)? What's expected timing of the priced round (i.e. how long should we expect to be hanging out holding a SAFE note?)
  - A: Hi Ray - You're thinking about it the right way. The $75M is a post-money valuation cap so it also represents around a 6.5X revenue multiple on a pre-money basis. While you will frequently see significantly higher revenue multiples, our goal was to price the this round and our prior round comparably and provide upside for investors if we're able to achieve higher multiples on future funding. It is also the same valuation that our other investors received, including the initial lead. In terms of the subsequent capital raising plans and converting the SAFEs, we are targeting an upsize of this round with a different lead that will convert the SAFEs to equity. We are engaged in some of those discussions already and aim to close that in the first half of the 2023.
- Q: Hi Charles, great product and congrats on your success. I'm familiar with RE JVs. So if I understand your model correctly, you connect investors and sponsors/developers, then make money on the fees, correct? Accredited investors usually don't have a problem finding sponsors/developers and with the jobs act, there are a lot of platforms for non-accredited investors that offers RE deals (i.e. Fundrise, Groundfloor, etc.). So what makes you different to be able to run enough deals to generate enough in fees to continue to grow revenue exponentially? As you said, there really aren't exits in this industry for platforms/sponsors. you just have to keep finding deals.
  - A: Hi LD - thanks for the kind words and good questions. You're correct on the basic model - we find real estate sponsors/developers, evaluate their investors and offer access to accredited investors. We take a more active management approach than many of our competitors in terms of evaluation, investment structuring and asset management during the life of the investment. We also offer a range of investment types beyond the typical JV equity syndication that are less available to our customers either directly or from competitor platforms - both individual investments and different diversified products (including a savings alternative), as well as both debt and equity investments. Our goal is to help investors build a diversified portfolio of real estate, just as they would stocks and bonds. Fundamentally I don't think this will be a winner take all market as you see more frequently in traditional technology industries. The two markets (real estate and investment) are simply too big and the incumbents in those markets have a large number of scaled "winners". While our business and industry have grown quite a lot in the last few years, we are really just scratching the surface of penetrating the markets we sit between. Last year we did approximately 50 transactions. Marcus and Millichap, a public investment sales focused real estate firm, did over 13,000. You can find similar examples on the investor side - market penetration is still very early relative to opportunity. In terms of exit - I think there are a range of potential acquirors who would see our business as complimentary to theirs. Wealth managers (incumbent or new age), real estate services firms, asset managers expanding retail investor distribution or wealthtech platforms looking to diversify across geography, product type, etc. While there hasn't been a lot of M&A yet, there has been some. An equity crowdfunding company called Seedrs was recently acquired for $100M by another platform. From what is publically available they had a very similar revenue profile to us from 2019-2021 but much steeper losses and a much bigger team. The acquirer was interested in geographic expansive (Seedrs is UK based). I know that was a lot of answer but hopefully addressed your questions!
- Q: Currently, only accredited investors have access to the investments. Is opening to non-accredited investors a possibility in the future?
  - A: Hi Brad - yes, we are planning to expand to non-accredited investors in the future. As we begin to roll out more diversified investment options, we will be able to expand to non-accredited investors.
- Q: Hi - Very interesting company with impressive growth. A few questions. (1) How has the current macro environment impacted your business? What is your view on the real estate market for the next 2 years, and how does that change (or not change) your strategic/operating plan for the company? (2) How do you source equity vs. debt deals for the platform? Does that mix change with market conditions, or is there a long-term recommended mix (e.g. 60/40 for stocks/bonds)? (3) Does EM participate on the performance of the deals? Or do you strictly earn non-performance fees? (4) What makes up your $16m of short-term debt? (5) The deal page indicates the first $2m will be at $75m cap, but you've already raised $7m and still shows $75m cap. Please clarify. Thanks in advance!
  - A: Hi Jeff - lots to unpack in your questions! Let me try to tackle them. 1) Macro conditions are a short term negative, which can turn positive next year through a combination of market changes and our strategy given the conditions. Rapidly rising rates is reducing CRE transaction volume just as it is in the residential market and puts natural downward pressure on valuations. There is a gap between seller expectation of price and buyer expectation of price. This makes it harder to find transactions that make sense, particularly for real estate equity investments. That will begin to shift as the market adjusts to higher rates and sellers who need to sell must change their expectations. This will open up compelling buying opportunities. More near term, real estate debt is now significantly more attractive as there are less lenders operating in the market given the volatility and interest rates/returns are significantly higher. Strategically, we are leaning into debt in 2023, including launching a new debt product in Q1, while being more selective than ever on equity. We are planning a new equity product later in 2023 as the opportunity grows there. 2) The sourcing process is relatively similar for both debt and equity, a combination of direct outreach, inbound requests and broker relationships. As I hit a little bit above, our product mix does shift based on market conditions. In terms of individual portfolio construction, we find there is a bit range among our investors and our goal is to make it easy for investors to define that mix based on their investment goals. 3) We earn performance fees in some cases (generally equity), generally alongside the Sponsor. 4) The short term debt on our balance sheet is actually a specific investment vehicle, the Alpine Note. Those funds are generally used to "pre-fund" investments on the platform before they are syndicated to investors so there are off-setting assets ($16M of investments + cash). We are in the process of moving that vehicle off balance sheet as it is not corporate debt in the true sense. 5) The $2M "early bird" is a quirk of WeFunder. Because we raised the majority of the $7M+ offline (ie, off WeFunder) that does not count towards the $2M. The offline investors invested at $75M post money. If it would be helpful to schedule a call to go over this please let me know.
- Q: Why a SAFE? I always get a bit anxious about them and how/when that will convert. How does this company compare to your biggest competition? I see lots of companies that are allowing more retail type investors to invest a small amount of money either into airbnb properties or other types. Thank you.
  - A: Hi Adam - we selected a SAFE for a few reasons - given the volatility in the public and private markets we (and the largest investor in the round) felt it was a good structure to provide both upside and downside protection to investors. We are also targeting a larger investment into the business in 2023 and didn't want to set the market on share price. There's definitely a TON of interest in retail investors right now. This is true both for platforms like ours or the airbnb property style platforms, but also true for institutional asset managers like Blackstone which have leaned in heavily on retail offerings. Broadly speaking, we compete with all of them but the potential market on the customer side is incredibly large (trillions) and varied (investors who invest $100s vs $100,000s are different profiles). Single family home strategies - whether that's fix and flip loans or airbnb rental strategies - are the most crowded part of the market on the real estate side of the business. Commercial real estate has fewer players in part because the barrier to entry is higher given the amount of money involved in an average transaction is much, much higher. We felt this first hand in the early days - it took us ~4 years to get to $100M+ platform volume. We will finish at around $170M just in 2022 and we should be hitting $100M in a quarter in the not distant future. It forms a bit of a moat around commercial real estate. We look at Crowdstreet, Cadre and Realty Mogul as key competitors. The business models are somewhat different for everyone but we try to distinguish in a few ways - 1) we both vet investments up front and help service for the life of investment 2) we're focused in the middle market of real estate ($5-$40M transactions) were there is the most fragmentation and far less institutional capital and 3) we offer a range of real estate products - a short term savings alternative, debt and income-oriented investments, and growth equity (our competitors generally only do equity). Hope this answers your questions.
- Q: Hi Charles, do you have plans to lower limits and open to un accredited investors? Do you believe it would be beneficial to your company? I imagine it would open up a new market of investors and capital to your investments. I would like to invest in some of your offerings but I’m not accredited and the 5-10k limit is too high for me. I’d be in the 1-2k range.
  - A: Hi Mical - we are looking at rolling a product that would be open to non-accredited investors. Those investments have to be registered with the SEC so its a big process but definitely a company goal for us.
- Q: Hi. As an investor had a few questions. Does the investment by Marcus and Millichap trigger a conversion of the last rounds SAFE into equity? How much was invested by them? Why are you choosing to do another Crowdfunding at this point?
  - A: Hi Yosef - due to the structure of the Marcus & Millichap investment, the SAFE conversion was not triggered. The exact terms of the investment are confidential so I'm not able to share much detail unfortunately but you can see some in our financials. We are doing another crowdfunding because we see this as an opportunity to give investors another bite at the apple post-Marcus and Millichap investment while strengthening our balance sheet to capitalize on a consolidated market.
- Q: Can you give an update on our investment? The 11/27 update was about Ascent Income Fund. Is that related to this investment? Has our money been placed yet? Please provide at least quarterly updates.
  - A: Hi Todd - we've been providing updates offline (rather than through the WeFunbder app) to existing investors. We closed the last WeFunder round in April of last year so yes, your investment from that round is closed. Let us know if you haven't been receiving them and we'll make sure the distribution list is updated appropriately.
- Q: What was the revenue for Q1 2023? What are you projecting for the year?
- Q: How many active users - with $1k+ balance - do you have ? How is your user growth year over year. Also, on the track record section, it say $500M+ total raised with 222 offering, in the one pager details track record it says $90M+ invested. Can you the difference between these 2 numbers https://equitymultiple.com/wp-content/uploads/2023/02/EquityMultiple_Track-Record_Q1-23.pdf
  - A: Hi Michael - Great questions and sorry for the slow reply. We have over 3700 actual investors who have invested approximately ~130K on average across 5+ investments each. I can pull the exact number but we acquired approximately 1000 investors in both 2021 and 2022. We were founded in 2015 so we acquired more new investors in 2021 and 2022 combined than 2015 to 2020 combined. In terms of investor growth flattening in 2022 vs 2021 that was really market driven - as the financial markets in Q2 22 it became harder to acquire new users and we ramped down our spending on marketing in the second half of the year. On the total ~500M invested - the $90M is specific to one of our product lines - the Alpine Note (we separate investments into 3 categories - Keep, Earn and Grow). That product was launched in September 2021 and has seen rapid growth. Let me know if you have any other questions.
- Q: Is there an exit strategy in mind?
  - A: We would like to produce some of liquidity in 3-5 years or less. I believe sale or majority investment that produces partial liquidity is the most likely path given where the market and industry stand today. While there has not yet been meaningful M&A in the sector, growth has ballooned in the last 2-3 years against all types of online alternative investing (and online investing more broadly) and the interest of larger incumbent players in retail investors is growing with it. Ultimately, we are going to focus on growth, look for a strategic partner/investor and be nimble on exit to maximize shareholder value.
- Q: Are ther any updates on this investment with EquityMultiple?
- Q: Has any of this happened? "In terms of the subsequent capital raising plans and converting the SAFEs, we are targeting an upsize of this round with a different lead that will convert the SAFEs to equity. We are engaged in some of those discussions already and aim to close that in the first half of the 2023. "
- Q: Hi, is the company alive? Any update? Thank you.
- Q: I wanted to check if investors should be receiving periodic updates on performance and path of the investment?