Stake, a crowdfunding platform for Dubai real estate, attracts $ 4 million of initial funding

Stake, a crowdfunding platform for Dubai real estate, attracts $ 4 million of initial funding

The money will be used to develop new features and increase the capacity of the platform in order to expand its presence in the market

Stake is a crowdfunding platform for real estate investments that provides access to this opportunity to any users who are able to spend $ 545 on an investment.

Launched in DIFC FinTech Hive (part of the Dubai Special Economic Zone, engaged in the development of technologies for the financial sector) in December 2020, at the moment the company has attracted $ 4 million of investment in the initial round of securities placement.

The participants-investors were members of a consortium of investors led by Combined Growth Real Estate. The latter was created in the United States by Amer Hammur, chairman of the American real estate investment company Madison Marquette.

Other investors included Vivium Capital, a private family office in Dubai, Verve Ventures, Lama Holding from Riyadh and shareholders of the British Chalgrove Properties.

At this stage, Stake plans to expand and strengthen its presence in Dubai, but now it plans to cover the entire region of the UAE.

In a distant view, this platform is similar to brokers like Robinhood Markets, with their mobile application that allows any individual to buy shares on the stock market without any commission payments and difficulties with registration that may arise when participating in trading on the market through classic brokers.

Many people could have heard about Robinhood from the news about the short-squiz of GameStop shares and the rodeo of AMC cinema shares.

However, Stake is primarily a crowdfunding platform, in which users-investors invest their funds in the company, and the company itself uses these funds to invest in real estate, and users who have invested money receive their share of the total monthly rental profit. Thus, individuals unite, becoming a collective investor, through partial ownership of property.

At the moment, Stake is working with ready-made real estate in Downtown Dubai, Dubai Marina, DIFC and City Walk.

According to the company, since its launch last year, the platform has attracted more than 4,000 new users and has achieved 30 percent growth every month.

In a statement containing information about raising $ 4 million, it is said that the company is already negotiating with partners and regulatory authorities in Saudi Arabia, and also intends to expand its activities in the UK.

Stake has a number of professional consultants, including Daniel Miller, co-founder of Fundrise, the largest real estate crowdfunding platform in the United States, as well as Gaurav Shivpuri and Fadi Mussali, top managers of the international real estate consulting agency JLL.

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