Fifth Wall led Fractional’s funding, which brings its total funding to date to $20.55 million. The funds will be used to expand the product, hire, and broaden its education initiatives.
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A collaborative real estate investing platform called Fractional has closed on a Series A venture capital round of $15 million, according to a press release sent to Inman.
Fifth Wall led the funding, which brings Fractional’s total funding to date to $20.55 million. Left Lane also participated in the latest round, the release stated. The funds will be used to expand the product, hire, and broaden its education initiatives.
Fractional was reviewed by Inman in 2023 and earned high marks for its ability to broach the most challenging aspects of putting money into real estate: where to start. The solution also provides younger, aspiring home buyers still priced out of the market a way to take part in the real estate economy. It was founded in 2021.
Its educational arm, Elevate, is an accelerator program to help create “matches” between people and properties. It’s 12 weeks of courses total, five of which are curriculum-focused, and its goal is to take accepted participants from “interest to investor” in 90 days.
“For the average American, the path to purchase investment real estate is an arduous one. It is guarded by little accessibility due to the high cost of entry, which makes it extremely hard to take the initial step, let alone imagine the financial as well as personal growth opportunities that come with real estate ownership,” said co-founder Stella Han in the press release.
“We are grateful for Fifth Wall and our other investors’ partnership, as we enter into this phase of strategic growth.”
Fractional members work in teams on real estate investing projects, in which one may handle market research, another lease-up and another financing. The company then assists its user teams with legal entity creation, banking, admin, and accounting oversight.
“This is what makes Fractional a powerful platform to learn and find business partners,” the release stated.
Fifth Wall’s influence on innovating real estate is hard to understate. It’s been pushing heavily into decarbonizing the space from foundation to rooftop by backing alternative solutions to slow, resource-intensive building and operating practices. It raised a $500 million Climate Fund in November 2022 and the next month another $866 million to target a broader subset of real estate innovators.
Fifth Wall has also backed proptechs Lessen, Veev, Flyhomes, Sundae, and Hippo, among many others.
Han’s co-founder in Fractional, Carlos Treviño, said in a statement that the company’s overarching theme is to “divide and conquer.”
“We are here to take ownership of our financial future, to unlock our individual skills and unleash our collective, joint-investing power. We want a personal stake, not just a monetary one,” Treviño said.