What Groundfloor does

Groundfloor is a private markets platform founded in 2013 and headquartered in Atlanta that operates a crowdsourced real estate investing and lending marketplace. The company originates, underwrites, and services short-term, asset-backed real estate loans to vetted residential builders and renovators, then sells participations to retail and accredited investors under SEC Regulation A Tier 2 qualification—a structure the company pioneered as the first platform cleared to offer direct private real estate debt investments to both accredited and non-accredited investors. Groundfloor has cumulently deployed more than $2.2 billion across over 300,000 registered users and reports realized losses under 1.5% on more than $1 billion in originated loans.

The product suite centers on three flagship investor offerings—Groundfloor Notes (short-term fixed-term debt at 4.75–8.25% returns), the Flywheel Portfolio (an automated diversified portfolio of hundreds of loans on a 36-month reinvestment cycle with a $100 minimum), and individual LROs or Limited Recourse Obligations (at a $10 minimum with 5–15% rates)—supplemented by a self-directed IRA product and accredited-only offerings including the SMB Growth Fund (revenue-based agreements with multi-location businesses via Homegrown), the Consumer Credit Portfolio (private credit through Hive Financial Assets), and an 11.5% Convertible Debt Note. Borrower origination runs through a separate Groundfloor Lending business unit, with underwriting, loan servicing, and platform infrastructure built in-house; ACH payments route through Dwolla and bank connectivity through Plaid, and the platform supports native iOS and Android apps.

Groundfloor's revenue model combines net interest spreads on originated loans, per-batch fees on the Flywheel Portfolio, and asset-management-style economics on the SMB Growth Fund (an 8% preferred return floor plus carried interest promote). The company operates a self-serve, direct-to-consumer go-to-market with low minimums, complemented by inside-sales consultation for higher-minimum accredited products. Capital is raised via SEC exempt offerings, including a 2022 raise of $118 million anchored by Medipower (with a separate $320 million two-year commitment) and a 2024 Form D exempt offering of approximately $50.95 million. Groundfloor reported over $40 million in 2025 revenue (38.6% year-over-year growth) and is approximately 32% customer-owned, having avoided traditional venture capital funding.

Name

Groundfloor

Legal name

Groundfloor Finance Inc.

Website

https://groundfloor.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

101–250 employees

Short description

Groundfloor is an Atlanta-based private markets platform that originates short-term, first-lien residential real estate loans and sells participations to retail and accredited investors under SEC Regulation A, serving 300,000+ registered users with $2.2 billion+ deployed across Notes, Flywheel, and accredited SMB and consumer credit funds.

Ownership category

akta.pro rank

Product category

Alternative Investment Platform

NAICS

Real Estate Credit (522292)

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Real Estate / Property-Backed Marketplace Lending (Non-mortgage) (FSAKAHAG)

akta.pro secondary industries

Renovation Mortgage Origination (FHA 203(k), HomeStyle, CHOICERenovation) (FSALAAAL), Balance-Sheet / Portfolio CRE Lending (FSALADAG)

Keywords

• Real estate crowdfunding
• Private debt investing
• Alternative investment platform
• Real estate lending
• Asset-backed investments

Headquarters

HQ city

Atlanta

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Others

Revenue model

1. Net interest spread on originated loans: Groundfloor originates short-term, asset-backed real estate loans from vetted residential builders and sells them to investors as LROs (Limited Recourse Obligations); Groundfloor retains the spread between the borrower interest rate and the investor return rate, plus origination economics.
2. Flywheel Portfolio management fees: Each batch of the diversified Flywheel Portfolio carries its own fees attached (separate from the loan rates shown), generating asset-management-style economics on investor capital pooled across hundreds of underlying loans.
3. SMB Growth Fund performance and promote economics: SPV-level economics on the $1M capped SMB Growth Fund include an 8% preferred return to investors and a promote (carried interest) participation for Groundfloor once the preferred floor is cleared, plus paired 6-month 8% Groundfloor Note economics during the deployment window.
4. Capital raise via exempt securities offerings: Recurring Reg D / Reg A capital raises (e.g., $118M raise in 2022 and ~$50.95M exempt offering reported in 2024) bring in institutional and retail capital to fund lending operations and growth.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels8 records

Core offering

Groundfloor is a crowdsourced real estate investing and lending platform that originates, underwrites, and services short-term, first-lien-secured loans to vetted residential builders and sells them to investors as Limited Recourse Obligations (LROs) or packaged Notes and diversified portfolios. It was the first company SEC-qualified to offer direct real estate debt investments to both accredited and non-accredited investors, and now layers additional products including a Flywheel diversified portfolio, Self-Directed IRA, Consumer Credit Portfolio, and an accredited-only SMB Growth Fund.

Product overview

Groundfloor is a unified private markets platform plus a set of investor products and a separate borrower lending unit. The core investor offering comprises three flagship products: Groundfloor Notes (short-term fixed-term debt investments backed by first-lien real estate collateral), the Flywheel Portfolio (a diversified, hands-off portfolio of hundreds of loans with a 36-month reinvestment strategy and weekly payouts), and individual Loans (LROs - Limited Resource Obligations for hand-picking specific property-backed loans starting at $10). Layered on top are the Self-Directed IRA, the SMB Growth Fund (accredited-only access to Revenue-Based Agreements with multi-location businesses), the Consumer Credit Portfolio II (private credit via Hive Financial Assets), and the 11.5% Convertible Debt Note. The companion Groundfloor Lending site (lending.groundfloor.com) operates as a distinct business unit for borrowers and lending partners, and the Groundfloor mobile app (iOS and Android) wraps the investor experience. Education and thought-leadership are delivered via the Beyond the Stock Market podcast. All products are SEC-qualified offerings under Regulation A and operate under Groundfloor Finance Inc. and affiliated LLCs.

Differentiator

Problem solved

Functional benefit

Brands

• Groundfloor Notes: Short-term fixed-income Notes backed by first-lien real estate collateral, with 1-month, 3-month, and 12-month (Signature) terms.
• Flywheel Portfolio
• SMB Growth Fund
• Consumer Credit Portfolio
• Beyond The Stock Market
• LROs (Limited Recourse Obligations)
• Groundfloor IRA

Products and services

• Groundfloor Notes Short-term, fixed-term investments backed by first-lien real estate collateral, offering fixed returns across 1-Month, 3-Month, and 12-Month terms with set repayment dates. Available to all investors, no accreditation required.
• Flywheel Portfolio Diversified, automated real-estate-backed portfolio that spreads capital across hundreds of loans on a 36-month reinvestment cycle with weekly principal and interest distributions and optional auto-reinvestment for compounding. $100 minimum initial investment.
• Loans (LROs - Limited Recourse Obligations) Individual short-term, property-backed loans to vetted home builders and renovators structured as Limited Recourse Obligations secured by first-lien real estate collateral. Investors hand-pick specific projects starting at $10 minimum with interest rates ranging from 5% to 15%; new loans released every Wednesday at noon EST.
• Groundfloor Self-Directed IRA Self-directed retirement accounts (Traditional, Roth, SEP, and Simple IRA) that let investors put retirement savings into real estate debt via Groundfloor Loans and the Flywheel Portfolio. $25,000 minimum opening balance; Groundfloor covers custodial fees through December 2025.
• Groundfloor SMB Growth Fund Accredited-only fund providing access to institutional SMB Finance through Revenue-Based Agreements deployed against established multi-location businesses (restaurants, coffee chains, gyms). Targets 13-15% net IRR over 4-5 years with quarterly distributions and 1099-INT reporting; $20,000 minimum with $5,000 increments.
• Consumer Credit Portfolio (I and II) Diversified pool of short-term consumer loans offering accredited investors access to private credit with AI-driven underwriting by partner Hive Financial Assets. $3M offering size, 10% fixed annual target return, quarterly distributions over 45-month term, $10,000 minimum.
• Groundfloor Convertible Debt Note (CDN) Limited-capacity accredited-investor offering with 11.5% fixed annual interest rate paid monthly over a two-year term, with convertible features.
• Groundfloor Lending (Borrower Platform) Separate site experience at lending.groundfloor.com built specifically for borrowers and lending partners, offering short-term, first-lien-secured financing for vetted residential builders and renovators outside traditional bank channels.

Quantifiable outcome

• $2.2 billion+ total retail volume deployed across the platform
• +5 more outcomes

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature6 records

Partnerships

Four partnerships are on record, tiered core — co-develops new product vertical, flagship — operating partner for smb growth fund, core infrastructure — payment rails and core infrastructure — bank connectivity.

• Hive Financial Assetscore — co-develops new product verticalStrategic or Co-development PartnerHive Financial Assets co-manages Groundfloor's Consumer Credit Portfolio offerings; uses AI-driven underwriting to power consumer private credit investments on the platform. The first Consumer Credit Portfolio reached capacity in two weeks and Portfolio II ($3M, 10% target return) launched in May 2026.
• Homegrownflagship — operating partner for smb growth fundStrategic or Co-development PartnerHomegrown is the operating partner for Groundfloor's SMB Growth Fund, providing institutional revenue-based financing to multi-location businesses (restaurants, gyms, coffee chains). Homegrown's existing portfolio reflects three years of RBA financing, $14.4M deployed, 50+ locations enabled, $8.2M returned to investors, 71% repeat funding rate, and 25% portfolio IRR.
• Dwollacore infrastructure — payment railsTechnology or IntegrationDwolla, Inc. serves as Groundfloor's third-party service provider for ACH payment and funds transfer services; Groundfloor investors agree to be bound by Dwolla's Terms of Service and Privacy Policy and consent to information sharing between Groundfloor and Dwolla.
• Plaid Technologiescore infrastructure — bank connectivityTechnology or IntegrationPlaid gathers End User data from financial institutions for Groundfloor; users grant Groundfloor and Plaid the right to access and transmit personal and financial information from the relevant financial institution under Plaid's Privacy Policy.

Scale indicators16 records

Recent moves7 records

Expansion highlights1 record

Broad incumbents

• YieldStreet: YieldStreet is an alternative investment platform offering access to private credit, real estate, marine finance, and other asset-backed products to retail investors. Both platforms provide low-minimum, SEC-qualified access to private debt instruments and share a focus on asset-backed yield products for retail investors.
• Roofstock: Roofstock is an online marketplace for buying and selling single-family rental properties, with a broader focus on real estate ownership. It represents a broader alternative for retail investors seeking real estate exposure without direct property management, making it adjacent to Groundfloor's debt-based democratization thesis.

Direct peers

• LendingHome: LendingHome is a digital mortgage lender specializing in short-term bridge loans for residential real estate investors and fix-and-flip borrowers. Both Groundfloor and LendingHome operate in the residential fix-and-flip lending space with first-lien-secured, asset-backed loans to builders and renovators, making them direct peers on the borrower side of the marketplace.
• Fundrise: Fundrise is one of the largest direct-to-consumer real estate investing platforms in the U.S., offering eREITs and interval funds to retail investors. Both Groundfloor and Fundrise democratize private real estate investing with low minimums, online onboarding, and SEC-qualified offerings, though Fundrise is more equity-focused while Groundfloor is debt-focused.
• RealtyMogul: RealtyMogul is a real estate crowdfunding platform offering individual property investments and REITs to accredited and non-accredited investors. Both Groundfloor and RealtyMogul operate SEC-qualified offerings, target retail investors seeking access to private real estate debt and equity, and emphasize first-lien-secured or income-oriented real estate exposure.
• CrowdStreet: CrowdStreet is an online commercial real estate investing marketplace offering individual deals and funds to accredited investors. Both platforms serve as online marketplaces connecting investors to private real estate opportunities with similar SEC-qualified structures, though CrowdStreet focuses on commercial equity while Groundfloor focuses on residential debt.
• PeerStreet: PeerStreet was a real estate crowdfunding platform specializing in short-term, asset-backed residential bridge loans to real estate investors, similar to Groundfloor's LRO model. Although PeerStreet wound down its marketplace, it remains a historical direct peer comparison in residential fix-and-flip debt crowdfunding.
• EquityMultiple: EquityMultiple is a commercial real estate investment platform offering debt and equity investments to accredited investors with low minimums. Both platforms emphasize asset-backed real estate debt investments, target yield-seeking investors, and operate SEC-qualified online offerings.

Emerging players

• AcreTrader: AcreTrader is a farmland investing platform offering fractional ownership of agricultural land to accredited and non-accredited investors. It represents an adjacent alternative-investing platform with similar SEC-qualified structures and a self-serve retail investor experience.
• Arrived Homes: Arrived Homes is a single-family real estate investment platform offering fractional ownership of rental properties with low minimums for retail investors. While it focuses on rental equity rather than debt, it competes for the same retail-investor dollar seeking real estate exposure via a self-serve platform.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/groundfloor_com
• YouTubeyoutube.com/channel/UC7eKJSzwkRcWB85AIrIOaqQ
• Facebookfacebook.com/groundfloorfinance
• LinkedInlinkedin.com/company/groundfloorus
• Instagraminstagram.com/groundfloor_com

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries6 records

Funding overview

Funding rounds12 records

Investors7 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Groundfloor