# Groundfloor

Short-term, high-yield real estate debt investments for everyone.

## Elevator pitch
Groundfloor offers short-term, high-yield real estate debt investments to the general public. We believe that everyone should have the freedom to invest on their own terms.

- Canonical URL: https://wefunder.com/groundfloor
- Entity ID: wefunder:company:116743
- Last updated: 2026-06-13T05:00:56Z
- Generated at: 2026-06-14T01:47:56Z

## Quick facts
- First and only company qualified by the SEC to issue payment-dependent real estate notes
- Our platform makes investing safe, easy, and predictable – with no fees, ever
- Short-term, high-yield investments that average a 10% annual return
- Nearly 200,000 users and growing quickly
- Over $800 million invested on the platform to date
- Winner of over two dozen industry and innovation awards
- Annual revenue CAGR of 62% since 2018, on track to grow from $14.1m in 2021 to $23.1m in 2022
- Raised more than $38 million from notable angels, VCs, and over 6,375 individual retail investors

## Active fundraises
- wefunder:fundraise:68134: 4(a)(6) successful (USD)
- wefunder:fundraise:64275: 4(a)(6) successful (USD)

## Story
We are mission driven to provide financial access for all walks of life and help communities in the process.Investing shouldn’t come with annual management fees, hidden spreads, or lock-ups that put control in the hands of a fund manager. Our platform enables everyone to build diversified portfolios that deliver continuous cash flow with high yields secured by real assets.Groundfloor is the only platform where you can safely earn up to 10% returns with investments that are secured and backed by real assets. Now you don’t have to sacrifice returns when minimizing risk.Sign UpSetting up your account is quick and easy. Choose the amount you’d like to invest and get started with as little as $10.Fund Your AccountLink to your bank account through our secure encryption partner to transfer funds to begin investing. With Groundfloor, your financial future is already looking up!Choose InvestmentsBuild your own portfolio of short term, high yield, real estate debt investments based on your own personal risk/reward profile. Or let our investment wizard guide you.Manage & EarnDebt products inherently carry less risk, which is why we’ve been able to generate consistent 10%+ returns for our investors over the past eight years.Groundfloor investments are secured by real assets in a first lien position. You can choose individual renovation projects to invest in, or use our automatic investing tools to continuously invest in projects that meet your criteria. Investments repay every 9-12 months on average, so if you make investments each month, after 9 months, you’ll always have investments repaying each month. That’s pretty good liquidity for a secured investment backed by real assets! Groundfloor is a safe way to earn great results.Sign UpDownload Stairs from the App Store or Google Play and sign up in just minutes.Connect Your BankLink to your bank account through our secure encryption partner to transfer funds to begin earning interest.Start EarningTurn on recurring deposits and watch your balance start growing immediately!Safe and StableOur investments are backed by real estate debt, which carries lower risk than common or preferred equity investments.Consistent ReturnsOver the last eight years, Groundfloor investments have consistently generated an average of 10% returns for our investors.Short-term LiquidityWith recurring investments and our short-term loans, your portfolio can generate cash flow in as little as nine months.As a provider of debt, we can preserve investor capital through market turbulence, while profiting from capital scarcity and new opportunities to supply equity capital to fill the gap created by lower available leverage while allowing our investors to “buy low.”As an intermediary, Groundfloor creates value by matching demand for capital with supply through market cycles. Our unique value proposition for investors is a competitive advantage, especially when traditional capital markets are challenged by economic conditions.Utilizing our Series B-3 financing, growth is accelerating again after 2021. Our model projects earnings of $6.1m on $80.5m revenue and $1.6b invested in 2025.Thank you for your interest in Groundfloor. If you would like a .pdf copy of our pitch deck, please click below.

## FAQ
1. **How many shares of ground floor do I get for investing $100 dollars**
   - Hi Francisco. Thanks for your interest. This round is priced at $43.90 per share, so roughly 2.27 shares.
2. **We're equity investors in Groundfloor since 2018 and also have used their platform since the moment it went live in our state and we couldn't be more impressed with the company Brian and Nick are building. Groundfloor has consistently kept equity investors updated and their cu...**
   - Thanks so much. We appreciate the support and your vote of confidence!
3. **Brian we've been investors in WeFunder for a few years, we first heard about GroundFloor a few years back and attempted to invest when you were raising thru SeedInvest but they never could get the paperwork finialized to get our investment in. We haven't had issues with StartE...**
   - Thanks Chris. No worries and many thanks for the questions and for recommending us as an alternative investment product. To clarify, our share price in 2020 during our raise on Seedinvest was $18.23 per share. We most recently raised capital from a strategic investor ($5.8 million in January 2022) at a share price of $30.82. We have not expanded our valuation multiple (EV/R) in this round and have in fact pulled it back from 15x to 12x on a last 12-month basis to reflect market conditions. Co...
4. **I'm a current investor in the platform, I have participated in multiple raises. I have been VERY satisified with the communication, the updates. This company does a great job innovating and coming out with new offerings. I make investments to the platform itself on a weekly ba...**
   - Thanks, Chris. We really appreciate the compliments and support!
5. **What were the pre-money valuations of previous raises?**
   - Our most recent raise from a strategic investor ($5.8 million in January 2022) was at a $149.8 million pre-money valuation. Prior to that, we raised the following annual crowdfunded equity rounds: $7.2 million in 2020 at $73.9 million $3.0 million in 2019 at $51.8 million, & $4.2 million in 2018 at $27.3 million Our Series A, led by Fintech Ventures in 2015, was $5.0 million at $13.5 million pre. Our Series Seed in 2014 was $1.5 million at $6.2 million.

## Team
- Brian Dally (Co-Founder & CEO)
- Nick Bhargava (Co-Founder & EVP Regulatory Affairs)
- Rhonda Hills (COO)
- Chris Schmitt (CTO)
- Benjamin Sutton (SVP, Finance & Strategy)
- Justin Kroop (SVP, Marketing)
- Patrick Donoghue (VP, Risk Management)
- Chris Garrett (VP, Product)
- Megan Heaney (Head of People, Culture and Projects)

## Q&A
- Q: Looks interesting. What is the revenue YTD or for the 1st half and the same for the same period in 2021? How have recent economic changes affected your business? Also, is there any discount for this early period? Doesn't seem so. Thanks
  - A: Our mid-year GAAP financials will be publicly available via our semi-annual SEC filing soon. On an non-GAAP basis, according to unaudited internal management reports, 1H 2022 revenue came in at $12.6 million which was a 27% positive variance to budget. This represents an increase of 137% over the comparable revenue figure for the same period one year ago (non-GAAP revenue for 1H 2021), which was $5.3m. We continue to monitor and adapt to the economic environment and how it shapes behavior of our investors and borrowers, as well as the value of our loan collateral. For example, in 2020 as the world struggled with the impacts of COVID, we saw investor demand shift on a relative basis to our short-term notes and higher-grade (A & B) loans. Foreclosures took longer to process due to legal delays and eviction moratoria. In 2021 (and continuing somewhat into 2022), we observed a higher rate of maturity defaults and worked with borrowers to extend repayment dates due to delays in permitting. We also began requiring longer loan terms (18-24 months, instead of 12) for new construction and "heavy rehab" projects to reflect these realities. Our performance as measured by net returns and loss ratios have withstood the test and weathered it remarkably well. Now, as the fed continues raising rates and capital markets tighten, borrowers are better able to execute on their projects but are being delayed from refinancing and/or finding they are unable to pursue their planned to exit via a refinancing to allow them to hold and rent their property. This causes maturity defaults and accordingly investor capital to recycle at a lower rate. We're responding in several ways, but one of the most exciting is a pilot product that allows qualifying borrowers with qualifying collateral to hold on to a portion of their stake in the property by converting their debt and selling equity in their rental property to investors on our platform (watch this space!). Sources vary on what can be expected for median home prices over the next 12 months. CoreLogic predicts an increase of 4.5% while Fannie Mae projects an increase of 3-4%. Other analysts predict an increase of 2.5-3.5%. We watch local price forecasts very carefully for certain strategic local markets, and foresee little risk of broad-based price declines for the price segments we serve in those markets. In July, nevertheless we made adjustments to our lending guidelines, such as pulling back on the leverage we offer. Several loan products are expected to remain "on hold" for the next 3-6 months. These changes have reduced the volume of our lending in July and August. We're purposefully exercising restraint during this time and planning for a flat second half. We're using this lull to digest growth and to build up retail investment volume to regain parity with lending volume. At the same time, we're seeing better deal quality as our borrowers are finding more deals at more attractive prices - and have fewer alternatives to compare for financing. It's actually a great time to be a capital provider. Finally, with all the concerns people have about inflation and the risk of recession, retail investment volumes are surging. In Q2 we saw a 12% increase in GMV (investment volume) and in Q3 we're on track to grow GMV at a significantly higher rate. Investors say that they see the low volatility and short term nature of Groundfloor's debt investments as a relative safe-haven compared to public market equities, bonds, and other competing alternative investments. I hope this detail is helpful. We've weathered (and in fact benefitted from) turbulence in the markets before, and are better positioned to do so now than ever.
- Q: I'm a current investor in the platform, I have participated in multiple raises. I have been VERY satisified with the communication, the updates. This company does a great job innovating and coming out with new offerings. I make investments to the platform itself on a weekly basis, I make use of stairs app where my return has been from 4-6%, it's currently as 6% yield that's paid weekly and I can withdraw at any time. I love that GF is moving towards not only offering debt portfolios but I LOVE that they are beginning to offer people the opportunity to take EQUITY positions in Single Family Residences. Great organization!! I am a shareholder, investor in GF Platform LROs & Investor in Stairs. GF is my Bond Alternative. I use GF to smooth out the volitality of owning public stocks. The returns have been very steady and reliable on the platform.
  - A: Thanks, Chris. We really appreciate the compliments and support!
- Q: We're equity investors in Groundfloor since 2018 and also have used their platform since the moment it went live in our state and we couldn't be more impressed with the company Brian and Nick are building. Groundfloor has consistently kept equity investors updated and their customer service on the LRO side is phenomenal.
  - A: Thanks so much. We appreciate the support and your vote of confidence!
- Q: Brian we've been investors in WeFunder for a few years, we first heard about GroundFloor a few years back and attempted to invest when you were raising thru SeedInvest but they never could get the paperwork finialized to get our investment in. We haven't had issues with StartEngine and WeFunder here so glad you've made the switch. However the per share price is quite the jump from the last $15.15 amount,and with your current run rate and monthly burn rate of $2.5m a month, you're burning cash at a surprising rate. Given that the market has softened and other comparable companies like this are trading around $1.5b - Lending Club(which is currently profitable), given this valuation there is the potential for 5-10x for these late stage investors. We do prefer to get in earlier but as said we did miss our shot. No worries. But after running some numbers we will unfortunately have to pass on this round with you guys as we don't see as much upside for the associated risk at this valuation with again a fairly known exit valuation, we however will still recommend your company as an alternative investment source for people to invest side cash with as it's really good for that as short term cash holding. I think it would help others here if you were to explain why you have such a high burn rate and at what revenue level would you consider to be your breakeven?
  - A: Thanks Chris. No worries and many thanks for the questions and for recommending us as an alternative investment product. To clarify, our share price in 2020 during our raise on Seedinvest was $18.23 per share. We most recently raised capital from a strategic investor ($5.8 million in January 2022) at a share price of $30.82. We have not expanded our valuation multiple (EV/R) in this round and have in fact pulled it back from 15x to 12x on a last 12-month basis to reflect market conditions. Comps such as Startengine and Fundrise trade for 2-3x our multiple, so we think there's value on a relative basis -- and purposefully so as our goal here for customers who invest with us to grow their equity value when they invest in us. Importantly, we do not burn $2.5m cash per month, have never gotten anywhere close to that figure, and do not have plans to do so. Please clarify your source for it so we can disambiguate it. As indicated in the financial slide of our deck (scroll down the profile page), our cash burn for 2022 is projected to peak at $8.8m (which is an average of $733k/mo), and we plan to break even in 2024 on approximately $4 million in monthly revenue.
- Q: Thank you for the answers, especially on a Sunday afternoon. Just for information for anyone reading the questions - I have been a GF user and equity investor for several years. I am very happy with the platform. I believe your motivation of using multiple platforms to bring in new users is smart - good move. If someone invests in the equity offering why would they NOT try to use the platform itself. Great marketing.
  - A: Thank you, Erica!
- Q: Hi Brian, happy to see you on Wefunder (WF) doing a CF. I came across Groundfloor (GF) a few years ago, when I was looking for real estate (RE) alternatives. While I hold RE in multiple ways, I love GF's simplicity and low entry barrier. I recommend it to all my family/friends looking for alternative investments. So no issues with the product. But I want to dive deeper in Chris's question about valuation, which is both part of the fun of being an investor and keys to success of being an investor in startups. Robinhood EV/R range is 2-13 and currently sits at it's medium of ~4. A hypothetical IPO exit, startups usually see the highs at initial trading that quickly settles to the lows. And since CF requires a 1-year holding, WF investors will have to ride the wave. Your 2025 revenue projection is $80M x 4 is about a $320M (public market) valuation; which leaves little upside for a lot of risk. (And that doesn't even get into the small cap "death swirl" of lack of analyst coverage.) So any investor has to see the play here as 7-10 years out. How are you disrupting the RE industry where you can take market share from traditional private lenders and mortgage companies, without getting into too risk short-term loans. Like I said, I've done RE in many different deal structures. So if this is about simply structure, I'm not seeing the disruption. I understand CF on a JV RE deal, but at the end of the day, it's still traditional underwriting with a lender and lendee. So the question is less about valuation (but feel free to address) and more about your 10-year vision to help us understand why you are different than the tech companies that eventual bust when under the scrutiny of public markets. (FYI - the source of Chris's $2.5M/month expense is WF under the details section that summarize past 3 months).
  - A: First, thanks for using the platform and sharing your appreciation for the product. Robinhood's business isn't comparable to ours, so burdening our potential exit multiple with the 4x EV/R multiple currently assigned to theirs seems inappropriate. Like all other "re-intermediators" (and there are many), HOOD doesn't offer access to products that are any different from what an investor can find at Schwab, Fidelity or any number of other apps that exist now or could in the future. The two innovations underpinning HOOD's success have now largely been replicated, and were never barriers to entry that were sufficiently high in the first place (i.e. $0 commission trading & the app-based user experience). This now shows up in HOOD's quarterly revenues which dipped 36% in the quarter ended 9/30/21 and have been flat-to-down ever since. Unsurprisingly, Mr. Market punishes "growth stocks" that stop growing. By contrast, Groundfloor is first to market at scale with a novel combination of investment platform, asset manager, and capital provider. We're creating a new market in hyper-fractionalized real estate investing that never existed before. The barriers to entry high enough that seven years after qualifying our first offering with the SEC, no one has managed to replicate what we do. Our investors benefit from proprietary deal flow that isn't available anywhere else. Our products carry less volatility than stock and option trading and as such fill a white space in retail investor portfolios. Meanwhile, the credit and equity products we supply to developers of residential real estate are highly differentiated, as is our ability to supply both. We develop valuable relationships with the real estate developers who use our capital, and are rapidly expanding the scale and scope at which we can serve them. Our core credit products are so valuable that borrowers choose to pay 50-100% more in origination fees and rates compared to the competition. The ultimate test of differentiation is whether customers are willing to pay for it -- and ours do, and have for seven years running now, at scale. The markets we serve are immense in scale, so much so that no one has more than 6-7% market share nationwide. Ten years from now, we believe there's a very good chance that our model will have expanded in scope to more markets within and beyond real estate--and that Groundfloor will be huge beneficiary of having been first to market with it. We realize that there's more nuance to our model than meets the eye, which is why understand fellow founders in our space who've expressed befuddlement with us and prospective investors who "pass." At this point, we've heard all the objections and do our best to answer them. We are equally comfortable being misunderstood by those who don't see the value of what we've built and are continuing to build. If I can do a better job of clarifying, please let me know below and I'll follow up. It seems Chris misapplied the term "burn" -- which is a term of art that refers to how much cash a startup consumes in a given period (usually monthly). It is incorrect to apply that term to "spending" without offsetting the spend with revenue. We may be spending (not burning) $2.5 million per month, but that's only because our revenue has historically covered 80-120% of that spend in any given month. It would be a miscarriage of justice to lump Groundfloor in with the class of startups that raised too much money at too high a valuation, and then irresponsibly burned through it! To the contrary, our discipline through the ups and downs of scaling our model, including through Covid and what 2022 has brought, shows pretty clearly that we're a different animal altogether, and we hope one worthy of your investment.
- Q: Are all profits/dividends automatically reinvested into the SAME investment?
  - A: Just to clarify, it seems like you're asking about how our investment products work, i.e. the Limited Recourse Obligation (LRO) securities that we offer on our platform via our website and mobile app. Interest and repaid principal associated with those investments are not re-invested in the same investment or re-invested any new offering either. Instead, all proceeds are paid into a clearing account from which you can cash out via ACH or reinvest into a new security. As an option, we do offer an automatic investment feature that will reinvest any available clearing account balance according to your instructions, and with the option to cancel any investment made by the algorithm on your behalf. Our offering presented here via Wefunder, as distinguished from the investments we offer on our platform, is an investment in the equity of our company - by which you become a stockholder and participate in our future growth. It is not a real estate investment, and like most growth stage startup investments of this type does not offer any near-term liquidity via dividends or other means of profit sharing.
- Q: Could you please provide Groundfloor's voting and non-voting shares?
  - A: Tural, the shareholder agreements are available on the Groundfloor website. Go to your account dashboard. Thanks.
- Q: Thanks and yes I'm on the fence. Please elaborate on why the stock is at a high evalutation value of $42 per share. Just trying to better understand how the stock share is much higher than previous fund raises.
  - A: Hello Jared. As with many growth stage startups, our company is valued as a multiple of our revenue at the time of the offering, with customary adjustments for debt and cash on hand to determine its market capitalization. The share price is determined by dividing the market capitalization by the fully diluted shares outstanding. For this offering, our revenue for the most recent twelve months at the time of pricing was $19.4 million, valuing the company at approximately $243m when factored by a 12.5x revenue multiple. Our fully diluted share capitalization was approximately 5.53 million shares, which yielded the $43.90 share price. A share price can increase due to an increase in the valuation multiple and/or an increase in the variable (in our case, revenue) one uses to calculate the valuation. In our case, revenue grew almost 100% while share capitalization increased only 10%, which is significant compared to the increase in our share price of 42% from $30.82 which was set as of September 2021. This is due to our decision to reduce our revenue multiple in this round from its previous level of approximately 15x to the current 12.5x. I hope this is helpful.
- Q: Hi there. Been following Groundfloor for a while but haven't yet invested. Still learning this space. My question is around your Loan Default rate. Looking at the Financial Statement, it seems as if at the end of 2020, $14 million of the $66 million Carrying Amount was in Fundamental Default. That reads to me that around 22% of carry amount is in default. If we include those needing a workout plan, that puts 38% of amount in some sort of deferral or default. A few questions as a newbie. 1) Am I reading this correctly? 2) If so, is this within Groundfloor's acceptable limits? 3) If I had invested in one of the projects which went into Fundamental Default, what would be the result of my part of the investment? Thanks much, and apologies if I missed this in the presentation.
  - A: Our accounting policy on reserving for defaults is very conservative. We will account an impairment while a loan is being worked out. This does not mean we expect to lose the principal amount of the loan, it only means that such a loss may be possible, but no loss has actually been realized yet. When the loan is resolved, it is removed from this accounting line item. To my knowledge, we are the only investment platform with this level of transparency, reporting audited financials annually, as well as midyear financials. We believe default ratio is not the correct metric to measure our loan servicing practice. A prudent loan servicer will be proactive about putting troubled projects into default to preserve the asset value and get maximum leverage over the borrower. A more accurate measure is loss ratio. Our loss ratio is phenomenally low. It has historically been between 0.5% to 0.3%. We believe our track record of consistent returns and low loss ratio through several years of operations speaks for itself.
- Q: Hi Brian. We have invested previously through Seedunvest, and considering this round as well. Can you please tell what is your profit for 1H of 2022.? If you are still in loss, at what revenue level and what year you plan to turn profitable?
  - A: Hello Zohrab. Thanks for being a shareholder. Our first-half GAAP financials for 2022 show a loss of $885,811 for the six month period. While our core business is highly profitable, we plan to continue incurring some level of losses for the foreseeable future. Why? The losses we incur are for the purpose of making long-term investments in customer acquisition and product development that increase shareholder value over time. For example, we've hired 50 people this year to prepare for growth in 2023 with new products we're already testing including single-family rentals and equity in new construction projects among others. These new employees also help us combat fraud and build up our infrastructure for continued growth. Looking back at how this has worked out historically for our shareholders, since our SeedInvest raise in 2020 our audited GAAP financials for those two years (available on SEC.gov EDGAR) show we lost $4,786,633 in 2020 and $3,948,774 in 2021. Affording those losses required us to sell approximately 10-15% of the company's shares, but enabled us to increase the value of the company by over $80 million (over 2X). That tradeoff of selling a relatively small number of shares in order to afford incurring purposeful losses that accelerated the creation of a relatively large amount of value had the net impact of increasing the per share value of your stock from $18.23 in 2020 to $30.82 at year-end 2021 (and set us up to accelerate even more in the first half of 2022 to increase the share price to the current $43.90). As venture capital investors, this is exactly what you and I should want to see: A company (i) with enormous future opportunity in a large, attractive market, (ii) that's raising capital to accelerate its ability to pursue them, and (iii) has a track record of investing with discipline to increase shareholder value. We won't always choose to incur losses, as at some point the company will be so large that we will have harvested the low hanging fruit of growth. As a management team, our commitment to shareholders is to continue making those decisions with discernment and wisdom through market cycles and as our marketspace continues to evolve. We appreciate your trust and the trust of all those who invest in helping us maximize the opportunity for all of our stakeholders--shareholders, employees, and customers alike.
- Q: I went to create a new account but was unable to and received the following message: “ Thank you for your interest in Stairs. To ensure the best experience possible, we have temporarily paused new registrations. Please join our waitlist and we’ll contact you as soon as registration re-opens.” How come you are not taking new registrations?
  - A: In short, the product has been a huge hit since we launched it almost a year ago! We have paused new registrations from time to time while we balance supply and demand, and prepare to support the next level of scale. Good news is, we've been inviting people off the waitlist gradually over the past month, and expect to be ready to open registrations sometime in September.
- Q: Hi, I would love to hear about how the company is doing so far and updates about our investment in the company. Is there an app to trace our investment? I would appreciate it if this information were provided. Thank you.
- Q: How is everything going guys? Been over a year without any updates here?
  - A: Sounds like you're not receiving our quarterly shareholder updates. Please email support@groundfloor.us and they will make sure you're on the distribution going forward!
- Q: There is a lot of questions and zero answers. Everyone invested, but how often is the stock (investment) appraised? Out the gate the investment was a loss according to the tracker on groundfloor.
  - A: John, our investor relations team is available to answer questions at support@groundfloor.us. Since our campaign has ended here, we do not actively monitor or engage on wefunder's message boards. Direct your questions to our team. The share price as reflected on your Groundfloor investor dashboard is $43.90 - unchanged from the wefunder offering. We plan to update the price in February or March based on year-end 2023 results. Watch your email for an upcoming shareholder update webinar where we will present mid-year results and our roadmap.