Is Crowdfunding Still Viable In Today’s Market?

At the beginning of August, CrowdStreet CEO Tore Steen stepped down amid fire after more than $50 million went missing, as reported in Bisnow. The funds had been raised for deals in Atlanta and Miami by New York real estate firm Nightingale Properties, and they never closed. Both the Atlanta and Miami entities filed for Chapter 11 bankruptcy, per Bisnow.

The recent events raise questions over whether sponsors should consider raising money through crowdsourcing platforms such as CrowdStreet. When evaluating the options, it’s important to note that there are different structures. For instance, some cater to accredited investors while others accept non-accredited investors. The way funds are raised on platforms can vary too. While certain crowdfunding sites enable sponsors to have direct contact with investors, others keep the relationship anonymous