Arrived, a Seattle-based tech startup that turns rental homes into a mainstream asset class for everyday investors, raised $27 million in new funding to support its new “stock market for real estate” platform.
Neo led the latest round, which included Forerunner Ventures, Bezos Expeditions, Core, and other backers. Total funding is north of $60 million.
Arrived (formerly Arrived Homes) lets people buy fractional shares of single-family rental homes and vacation rentals for as little as $100. It’s pitched as an alternative way to gain exposure to real estate without taking on a full mortgage or managing a property.
The company identifies and acquires rental properties, then handles financing, renovations, property management and tenant relationships. Investors can buy shares in individual homes or pooled funds through the Arrived website. They earn quarterly dividends from rent plus a share of any appreciation when the property is sold after a multi-year holding period.
Since launching in 2019, nearly 900,000 registered investors have invested more than $340 million on the Arrived platform. The company says it has distributed more than $55 million and funded more than 550 properties across 65 markets in the U.S.
This week the company officially announced its new Secondary Market — a peer-to-peer marketplace where investors can buy and sell shares of rental homes directly from one another.
The market, which debuted earlier this year, saw investors place more than 57,000 buy and sell orders in its first three weeks of availability.
“We believe real estate investing is going to move online,” Ryan Frazier, co-founder and CEO of Arrived, said in a statement. “Our vision is a future where real estate investing feels just like investing in public companies — where anyone can buy and sell shares of properties in minutes, not months.”
Arrived earns revenue through multiple fee streams tied to the acquisition and ongoing management of rental-property investments. The model includes:
- A one-time sourcing/acquisition fee charged when it buys a property and raises investor capital.
- An ongoing assets under management (AUM) fee, paid quarterly or annually based on property value or investor equity.
- Real estate agent rebate income from the acquisition side, received from the seller’s agent when Arrived buys a property.
Earlier this year Arrived launched a “Seattle City Fund,” part of new product designed to give investors targeted exposure to a single metro area’s housing market without having to pick individual properties.
Arrived is part of a wave of tech companies applying fintech, crowdfunding, and fractional-ownership models to residential real estate. Competitors include Landa and Lofty, which describes itself as a “NASDAQ for real estate.”
The model isn’t without controversy. Critics argue that turning more single-family homes into investment products can worsen affordability by adding investor demand to already tight markets.
Arrived raised a $25 million Series A round in 2022. The company declined to share an updated valuation.
Arrived leadership includes Frazier (formerly with Simply Measured and Sprout Social); CTO Kenny Cason (Simply Measured); and COO Alejandro Chouza (Oyo and Uber).
Other investors include Salesforce CEO Marc Benioff; Match Group CEO Spencer Rascoff; and Uber CEO Dara Khosrowshahi.
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