The Story of Sharestates: From Startup to $1 Billion in 3 Years

Last year I wrote a piece about many of the companies who have participated in LendIt Fintech’s startup competition over the year. For that article we reached out to each company to get an update on the company’s progress. We shared that, given the information we had available, Sharestates was the most successful company to participate in PitchIt @ LendIt. Here are the stats they provided in March 2017:

  • 300+ loans funded
  • $250+ million in origination
  • 10% net return to investors
  • Zero loss of principal
  • 7 defaulted notes since inception (1 foreclosure)
  • $1.3 billion in debt capital commitments

All this was done in two and half years and what is more they were self funded and profitable.

$1 Billion Milestone

Now, just over a year later, they have announced they recently crossed the $1 billion mark in originations. The company did so in just over 3 years, having officially launched in February 2015, just before LendIt USA that year. They are the second company in the real estate crowdfunding space to do so and are on our list as one of the ten options available for accredited investors in the marketplace lending space.

Originations in the lending space is only one metric. Any lending company’s survival depends on the quality of the loans they are making. According to the Sharestates’ website, investors have earned an average 10.54 percent annualized return. They also report 0% loss of principal for their investors. As of last year when we checked in the company was profitable which sets them up for continued success going forward. We’ve seen very few companies in the marketplace lending space broadly achieve this goal.

Along with their press release, the company also announced a $100,000 giveaway which will be awarded to one of their current or new investors investors. Investors earn entries by referring new investors and these new investors are also entered into the giveaway.

Looking back it’s amazing to see how far Sharestates has come having watched them compete in PitchIt @ LendIt all of the way back in 2015. They have solidified themselves as one of the leaders in the real estate crowdfunding space and have showed continued growth as some other companies have struggled. Congratulations to the entire Sharestates team on this milestone!

For additional background on the company, you can listen to our podcast with Sharestates CEO Allen Shayanfekr which was recorded in late 2016.