RealtyShares of San Francisco, one of the legions of companies trying to shake up the real estate industry with technology, has laid off most of its people and will no longer seek new business but continue to manage existing deals. Started in 2013, RealtyShares is one of the oldest and largest companies involved in real estate crowdfunding. Its website let people find and invest directly in commercial real estate projects, such as existing apartment buildings and hotels, anywhere in the country. On the flip side, it opened up new sources of capital to operators seeking money to buy real estate. It raised $58 million in venture capital from leading firms including Menlo Ventures, General Catalyst and Union Square Ventures.
RealtyShares, one of the more promising entrants in the once-hot real estate crowdfunding sector, is shutting down, according to several sources. A write
The online marketplace connects investors with vetted real estate operators to raise debt and equity capital for commercial and residential projects. To date, RealtyShares has invested more than $700 million in over 1,000 deals.