Japanese real estate crowdfunding platform Crowd Realty raises $3.1M from SBI, MUFG

Japanese real estate crowdfunding platform Crowd Realty raises $3.1M from SBI, MUFG

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See the original story in Japanese.

Tokyo-based Crowd Realty, the Japanese startup offering a real estate-focused crowdfunding platform under the same name, announced on Monday that it has raised 350 million yen (about $3.1 million US) from SBI FinTech Fund in addition to three affiliated companies of Mitsubishi UFJ Financial Group (MUFG): The Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Capital and Kabu.com Securities. Founded back in December of 2014, the Tokyo startup secured an estimated 6-digit figures in US dollars from Global Brain in a seed round back in November of 2015, followed by securing an undisclosed amount in another funding from SBI FinTech Fund in December of 2016.

Crowd Realty said that it will use the funds to strengthen the platform.

The company launched a project called Kyomachiya No.1 Fund on May 26th this year, aiming to raise funds to renovate traditional wooden townhouses in Kyoto into vacation rental suites for inbound visitors. They successfully reached their funding target of 72 million yen in about three weeks after launching the project. Some of our readers may remember that Kyoto-based vacation rentals operator Tomaruba has recently secured funding from Crowdworks and others. Crowd Realty also manages several overseas crowdfunding projects such as mortgage loans for real estates in Estonia.

The company was selected in 2016 for the 2nd batch of startup accelerator “Tokyo Accelerate Program” which is run by one of Tokyo’s leading private railway companies, followed by winning the Demo Day competition of MUFG Digital Accelerator’s 2nd batch this year. Through their efforts at MUFG Digital Accelerator, Crowd Realty gains a partnership with Kabu.com Securities for integrating an investor base with each other, alongside Mitsubishi UFJ Lease & Finance for creating a system to help more money circulate in rural areas of Japan.

Focused on the Long Tail market in the real estate sector, the company aims to create a decentralized peer-to-peer direct financing system for real estate.

Edited by “Tex” Pomeroy