RealtyMogul.com, a Los Angeles-based marketplace lending platform, announced a new $35 million round in venture capital funding Tuesday.
The financing was led by Sorenson Capital. Additional funding came from Canaan Partners, which was an earlier investor in RealtyMogul.
The two-year-old startup said in a press release that it plans to use the new financing to hire more technologists and data scientists, and to expand its geographic reach further across the United States.
RealtyMogul is part of a new crop of online lending marketplaces that are focusing on real estate. These companies are trying to make it fast and easy for real-estate developers to get financing through Web portals. The loans are funded by institutional investors and accredited individual investors who can browse online listings.
RealtyMogul and several of its competitors specialize in smaller commercial real estate loans, as well as loans to investors who rehabilitate and resell residential real estate. Unlike some of its competitors, RealtyMogul offers equity financing for real-estate projects, in addition to loans.
[Coming this November: Marketplace Lending + Investing. Hear how participants in this fast-growth niche are using data and technology to propel lending into the 21st century.]
This month, RealtyMogul announced the addition of Michael Sanchez and Charles Kim, formerly of Colony Capital, to its commercial lending division.
Chief Executive Officer Jilliene Helman said in a recent interview that RealtyMogul's platform has provided more than $75 million in financing so far. "We're seeing just tremendous month-over-month, and quarter-over-quarter, growth," she said.