Key Takeaways
- • Mogul, a real estate investment platform, closed a $15.5 million Series A round led by Draper Associates at a pre-money valuation of $126 million, bringing total growth capital raised to $23.6 million.
- • Mogul says it has invested over $110 million in real estate since launch, targets a 12-20% IRR, and has more than 50,000 investor sign-ups.
- • The company reports it is cash-flow positive, cut manual effort by 89%, and reduced time per property from 18 hours to two.
- • Mogul projects a revenue run rate of $9 million by year-end and plans to scale to $60 million within 18 months of the raise.
- • Proceeds will fund AI-powered investing services, new hires, and portfolio expansion, with the company offering fractional ownership in institutional-grade single-family rentals.
Summary
Mogul, a real estate investment platform, has closed a $15.5 million Series A funding round led by Draper Associates, according to a company release reported by Crowdfund Insider. The round was priced at a pre-money valuation of $126 million, and the company says it has raised $23.6 million in total growth capital. Other participants include Draper Dragon, Ava Labs' Blizzard Fund, Jason Calacanis' LAUNCH, Venture Togethers, and Gaingels, along with strategic angel investors from technology and insurtech firms.
According to the company, the proceeds will be used to scale its artificial intelligence-powered investing services and expand its property portfolio, with a significant portion directed to new hires. Mogul states it is cash-flow positive and not in immediate need of capital, but accepted the investment due to what it described as strong inbound interest. The company says it has reduced manual effort by 89% across its services and cut the time required per property from 18 hours to two. Since platform launch, Mogul reports it has invested more than $110 million in real estate, targeting a 12-20% IRR, with over 50,000 investor sign-ups. It says it is on pace for a $9 million revenue run rate by year-end and plans to reach $60 million within 18 months of this raise.
Alex Blackwood, CEO and co-founder, described the funding as validation of the company's mission and said the industry is ripe for innovation. Tim Draper, founder of Draper Associates, said the firm invested at the pre-seed stage based on the founders' pedigree and their vision for real estate investing. Founded in 2022, Mogul offers fractional ownership in institutional-grade single-family rentals and states that fewer than 1% of properties it reviews pass its approval test. The article notes Mogul does not indicate it uses a securities exemption such as Reg D or Reg A, and that it uses an Investment Club structure in which each investment is created as an LLC, with minimum investments of approximately $250.
According to the company, the proceeds will be used to scale its artificial intelligence-powered investing services and expand its property portfolio, with a significant portion directed to new hires. Mogul states it is cash-flow positive and not in immediate need of capital, but accepted the investment due to what it described as strong inbound interest. The company says it has reduced manual effort by 89% across its services and cut the time required per property from 18 hours to two. Since platform launch, Mogul reports it has invested more than $110 million in real estate, targeting a 12-20% IRR, with over 50,000 investor sign-ups. It says it is on pace for a $9 million revenue run rate by year-end and plans to reach $60 million within 18 months of this raise.
Alex Blackwood, CEO and co-founder, described the funding as validation of the company's mission and said the industry is ripe for innovation. Tim Draper, founder of Draper Associates, said the firm invested at the pre-seed stage based on the founders' pedigree and their vision for real estate investing. Founded in 2022, Mogul offers fractional ownership in institutional-grade single-family rentals and states that fewer than 1% of properties it reviews pass its approval test. The article notes Mogul does not indicate it uses a securities exemption such as Reg D or Reg A, and that it uses an Investment Club structure in which each investment is created as an LLC, with minimum investments of approximately $250.
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