Propellr, whose alternative investment platform caters to institutions, family offices and accredited investors, has closed its first round of outside financing, and its wholly owned subsidiary has successfully obtained a broker-dealer license from FINRA.
Propellr, LLC raised USD1.6 million through a convertible debt offering that was limited to a small group of long time investors who actively participate in transactions financed through the platform.
Proceeds from the raise will be used to expand the company's business development, compliance and engineering teams. This round comes on the heels of a major milestone for the platform. In April, Propellr Securities, a wholly owned subsidiary of Propellr, became registered as a broker-dealer with the SEC and FINRA. Vertical integration with the broker-dealer should allow Propellr, LLC to increase the volume of offerings on its platform and grant access to new investors and maintaining a "best practices" culture with respect to compliance and investor security.
"We are seeing impressive traction for our platform," says Todd Lippiatt, Founder and CEO. "Alternative investing is going through a significant transformation driven by new regulations, consumerism and technology,"
“We help enable this transformation by empowering institutions and individuals to make informed investment decisions with access to meticulously curated opportunities. Propellr's singular focus to date has been to build an exceptional platform for high quality investment opportunities. Now that we have the critical pieces in place, we believe it's the perfect time for us to open the door to new investors and issuers. We've taken the last two years to build an impeccable track record all the while making vast improvements to our technology and operations."
Since inception, by working with high quality sponsors, investment opportunities offered on the Propellr platform have achieved an average net return of 17.3 per cent. The platform has successfully given investors access to 20 transactions, raising over USD50 million, with a total capitalisation of USD480 million averaging USD2.5 million per transaction. While currently focused on real estate investment opportunities, Propellr is in the process of rolling out multiple innovative alternative asset classes previously limited to a select few.
