Fractional is a full-service marketplace for friends and investing communities to co-own real estate together. Its software platform guides users through all steps of the co-ownership journey, from discovery, to acquisition, to management.
Fractional handles all the logistical overhead of entity formation, co-ownership legal agreement, financing, distributions, and much more. Social features empower investors to discover new opportunities and other potential co-owners and make learning about real estate investing more accessible.
Fractional opens the door to the real estate market and creates a space for everyday people to build their confidence, portfolio, and network.
As of November 2021, Fractional has raised $4 million at a $30 million valuation in their seed round led by CRV. The company’s roster of investors also includes Y Combinator, Will Smith, Kevin Durant, Goodwater Capital, Unusual Ventures, and more.
Since its inception in December 2020, Fractional has racked up hundreds of thousands of users on its waitlist. Despite being in private beta, the platform has already helped hundreds of users co-own 305 properties, totaling over $48MM in assets under management.
With Fractional, users directly own a property, not just a share of a trust. The benefits and flexibility of this model come in many forms.
Financially, Fractional owners make 40% more compared to REIT, crowdfunding, and syndicate investors. When crippling asset management fees are replaced with the tax benefits of true homeownership, it's no wonder investors prosper instead of the funds. Beta users who invested equal amounts through Fractional and an e-REIT with a similar investment strategy returned 3x more in cash flow distributions with Fractional than the e-REIT dividends.
Socially, Fractional users co-own with friends and harness the resources of like-minded, experienced investors within the community. Instead of merely being the receiving end for countless disclosure letters from faceless funds, Fractional users actively exchange deal-flow and management ideas so they can control their own financial future. The trusted community paired with a collaborative group process creates a unique environment for users to grow along with their real estate portfolios.
Saar Gur, General Partner - CRV:
“Fractional is creating a new investment platform that fundamentally changes how people buy and manage properties online. The platform empowers users (along with the friends and community members they choose as business partners) with full agency in their investments through direct, communal ownership.
One of the platform’s distinguishing factors is its social networking layer, where new and experienced investors participate in a symbiotic environment where ideas, deals, and resources cross-pollinate. This also lets Fractional drive constant engagement on the platform beyond raw transactions and fuel their growth through organic word of mouth instead of aggressive paid marketing.”
Tashi Nakanishi, Managing Partner - Dreamers VC:
“Fractional is a perfect fit for Dreamers since we look for companies that cultivate culture. The platform pushes for direct ownership, which empowers users to have full agency in their investment. We are excited about the community aspect, where friends and community members can build portfolios together.”
Fractional is currently a team of ten based out of San Francisco, CA. Its co-founders and team are former tech leads and early engineers from Affirm, Brex, Blend, and Divvy Homes, with real estate investing backgrounds.