Arrived: Democratizing Real Estate Investment Through Technology
In a significant development for the real estate investment landscape, Seattle-based startup Arrived has secured $27 million in new funding to expand its innovative platform that allows everyday people to invest in rental properties with minimal capital. This recent funding round, led by Neo and supported by notable investors including Forerunner Ventures and Bezos Expeditions, brings the company’s total funding to over $60 million. The investment represents growing confidence in Arrived’s mission to transform real estate investing into an accessible asset class for the average person, not just wealthy individuals or institutional investors.
Founded in 2019, Arrived has fundamentally reimagined how people can participate in the real estate market. The company’s platform enables individuals to purchase fractional shares of single-family rental homes and vacation properties for as little as $100, creating a pathway to real estate investment without the traditional barriers of large down payments, mortgage approvals, or property management responsibilities. This innovative approach has clearly resonated with the market – nearly 900,000 investors have registered with the platform, collectively investing more than $340 million across 550+ properties in 65 markets throughout the United States. Perhaps most importantly, the company reports having distributed over $55 million back to these investors, demonstrating that the model is delivering tangible returns.
The operational model behind Arrived addresses many of the challenges that typically deter individuals from real estate investing. The company handles all aspects of property ownership: identifying promising properties, securing financing, overseeing renovations, managing tenant relationships, and handling ongoing maintenance. Investors simply purchase shares in individual properties or pooled funds through the Arrived website, then receive quarterly dividends from rental income along with potential appreciation when properties are eventually sold after their target holding period. This comprehensive approach creates a truly passive investment opportunity that requires neither expertise in real estate nor the time commitment typically associated with property ownership.
In its most significant evolution since launching, Arrived recently unveiled its Secondary Market – a peer-to-peer marketplace allowing investors to buy and sell shares of properties directly from one another. This new feature represents a major advancement in real estate liquidity, addressing one of the traditional drawbacks of property investment: the inability to quickly convert assets to cash when needed. The market’s immediate popularity is evident, with investors placing more than 57,000 buy and sell orders in just the first three weeks of operation. As CEO Ryan Frazier articulated, “We believe real estate investing is going to move online. Our vision is a future where real estate investing feels just like investing in public companies — where anyone can buy and sell shares of properties in minutes, not months.” This vision of creating a “stock market for real estate” could fundamentally change how people think about property as an investment class.
Arrived generates revenue through several channels, creating a sustainable business model while providing value to investors. The company charges a one-time sourcing and acquisition fee when purchasing properties, collects ongoing asset management fees based on property values or investor equity, and receives real estate agent rebates when acquiring new properties. Beyond individual property investments, Arrived has begun expanding its product offerings with geographically focused funds, such as the recently launched “Seattle City Fund,” which allows investors to gain exposure to specific metropolitan housing markets without selecting individual properties. This product evolution demonstrates how the company continues to innovate within the fractional real estate space, competing with similar platforms like Landa and Lofty in what has become an increasingly dynamic sector.
While Arrived and similar platforms are experiencing rapid growth, they aren’t without controversy. Critics argue that the proliferation of investment properties could potentially exacerbate housing affordability issues by increasing investor demand in already competitive markets. However, proponents counter that these platforms actually democratize access to real estate wealth-building, allowing everyday people to benefit from property appreciation and rental income that was previously available primarily to the affluent. Arrived’s leadership team, which includes CEO Ryan Frazier, CTO Kenny Cason, and COO Alejandro Chouza, brings experience from successful technology companies like Simply Measured, Sprout Social, and Uber. With backing from prominent investors including Salesforce CEO Marc Benioff and Uber CEO Dara Khosrowshahi, Arrived appears well-positioned to continue developing its vision of making real estate investing as accessible and liquid as the stock market, potentially transforming how the next generation approaches building wealth through property ownership.
