Renren moves into property crowdfunding
Updated: 2015-06-18 08:24
By Zheng Yangpeng(China Daily)
|
|||||||||
A visitor sits at the stand of online social networking website renren.com during China Internet Conference 2012 in Beijing, Sept 11, 2012. [Photo/IC] |
Fundrise, a Washington DC-based real estate investment crowdfunding company, received $27 million in funding from Beijing-based Renren Inc, Benjamin Miller, co-founder and chief executive officer of Fundrise, told China Daily.
It is a small part of the Renren's pivot to Internet finance. The company began buying into many tech startups as its Facebook-like business lost momentum. As much as $500 million in venture capital has been invested in more than 30 deals, and more than half of that money went into e-finance, according to Forbes.
Renren declined to comment on those numbers or on its specific investment in Fundrise.
Founded in 2012, Fundrise's website allows lenders to invest in specific properties in US cities for as little as $100 per share and as much as $10 million. Returns have typically been 12 to 14 percent, the company said.
The 50,000 investors the company has attracted are all in the United States. Benjamin Miller and his co-founder Daniel Miller, who is his brother, are looking to expand the group of investors to countries like China, Canada and Israel.
Renren and Fundrise are still figuring out how to launch the project in China, with no details settled. As Miller finished a China trip recently, he admitted he knows very little about "what Chinese investors want".
"It may take years. We are not in a hurry. It's a long-term bet," he said, adding he hoped that Renren's investment could help boost Chinese users' trust in the US company.
One of the key challenges is that Chinese investors are not familiar with the "real estate crowdfunding" concept, which even in the US is in its infancy.
"Chinese investors typically own a house. It is not normal for them to own a piece (of a house)," Benjamin Miller said. "In addition, very few people in China rent an apartment."
Most of Fundrise's projects are multi-family residential projects in the US, which provide returns in the form of rent.
- Warriors beat Cavaliers to clinch NBA title
- Saving dogs from dog meat carnival
- Ten photos you don't wanna miss - June 17
- Race-goers get ahead with hats
- Top 10 most valuable auto brands in the world
- Ten photos you don't wanna miss - June 16
- Shaolin monks harvest bumper crop
- Cambridge students mark end of exam with boat race
Most Viewed
Editor's Picks
Premier Li embarks on Latin America visit |
What do we know about AIIB |
Full coverage of Boao Forum for Asia |
Annual legislative and political advisory sessions |
Spring Festival trends reflect a changing China |
Patent applications lead the world |
Today's Top News
China's economic strategy focus of panel
UN strategy for long term
topic of debate
Donald Trump announces bid for
US presidency
Vote to begin on Hong Kong's election reform
US is duty-bound to help Iraq wipe out the IS: Opinion
China, US spearhead MERS fight
Key China-US talks
next week
Jeb Bush announces bid for 2016 Republican presidential run
US Weekly
Geared to go |
The place to be |