Fundrise IPO: Information for Investors
The Fundrise IPO is not your traditional initial public offering. The company is democratizing ownership by making shares available to investors. Here’s what we know…
Fundrise IPO: About the Business
Fundrise is a leading online real estate investment crowdfunding platform. Starting in 2012, Fundrise became the first company to make commercial real estate publicly available online and offer true equity ownership.
According to the Fundrise website, the firm has helped with over $7 billion in total transaction value. In addition, the platform has over 210,000 active investors and nearly 300 employees.
Since its founding, Fundrise has not only raised money from venture capital funds. Moreover, Fundrise came up with an innovative way to raise capital through an internet public offering. Through the IPO, existing investors can contribute funds and get equity stakes in the company that could appreciate in value over time.
The company helps real estate sponsors raise money to invest in their deals. So, why not use the platform to raise money to fund and grow their own company? Here are the details…
Fundrise IPO: Exploring the Internet Public Offering
As an investor, you immediately think of IPOs as an initial public offering. This is when a private company offers stock to the public for the first time. It allows everyday investors to buy shares of the company.
The Fundrise IPO is different – it stands for internet public offering. The Fundrise IPO is a revolutionary investment strategy that allows investors to buy a stake in the Fundrise company itself. By investing in the Fundrise IPO, you purchase shares of Rise Companies Corp., Fundrise’s parent company.
When you invest with Fundrise’s services, you are investing in the company’s real estate projects. When you invest in the Fundrise IPO, you are investing in the company. Unlike a traditional IPO, Fundrise shares are part of a primary offering – these are not listed on an exchange. So you’re not buying publicly traded stock.
Fundrise’s marketing team describes the IPO as an integral part of Fundrise’s initial mission to democratize the investment industry. Investors in the IPO will benefit when the company succeeds.
Each stock has a public offering price, which is set by the company’s board of directors. However, this price may fluctuate over time. IPO investors must contribute at least $1,000.
How to Invest in the Fundrise IPO
To participate in the Fundrise IPO, you have to be a Fundrise investor. The minimum initial investment is $1,000. Although, the minimum investment can vary since investors can only purchase whole shares (which varies over time).
The amount you can invest depends on the total amount you have invested with Fundrise. You can only invest up to 50% of your Fundrise balance in the IPO. For example, if you’ve invested $6,000 in the Fundrise platform, your maximum IPO investment is $3,000.
Fundrise is offering nearly 2.6 million shares of its Class B common stock to the public. When you invest in the Fundrise IPO, you will not get charged commission fees. Instead, you simply decide how many shares you want to buy.
Your returns will depend on the company’s success and growth over time. Shares of Fundrise increase in value as the company grows. However, the return on your investment isn’t assured, just like any other investment. There is a possibility of losing a portion or all of your investment.
The Fundrise IPO is a long-term, illiquid investment. Through a traditional IPO on a stock exchange or a sale of the company, the company intends to provide liquidity in the future.
When Will a Traditional Fundrise IPO Take Place?
The Fundrise IPO is an internet public offering that lets investors buy shares in its parent company. Investing in the company at early stages is part of the company’s growth strategy. However, many investors want to know when Fundrise stock is hitting the market.
There have been no official announcements about a traditional IPO. The company is still in the early-stage investment phase of its growth. However, stay tuned for the latest updates on Fundrise stock. You can learn more about the IPO process in this step-by-step guide to going public.
As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. Furthermore, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.