I Invested $5,000 Into Fundrise IPO, Time For An Update!
Fundrise first began to raise cash through what is known as iPO (Internet Public Offering) back in January of 2017 starting at $5.00 per share. With the success of the iPO and the continued growth of the company, Fundrise was able to slowly raise it’s share price over time.
Here is a look at some key performance metrics from 2017 to 2018.
Performance Metrics 2017 to 2018
Price Per Share of iPO Since Inception
Rapid growth of the company has allowed the company to raise their share price to $8.05 as of this writing. That’s a 61% increase since they had their first offering back in 2017.
My Investment Result
My return as of today comes out to be 16.7% gain. That’s a gain of $832.60 in less than a year from a $5,000 investment! Not bad.
On a personal note, I like the investment product and the transparency the management team provides. The mobile app which was released this year looks of high quality and the updates/newsletters related to the projects keep investors well updated.
Crowdfunding platforms as a whole have been doing fairly well from what I’m reading. Looking at how Fundrise was able to double in size in a single year, and how much interest my Fundrise Review has been gaining lately, the appetite for such alternative investment product seems to remain healthy. I’m quite optimistic about the future of this company.
When Is The Next Fundrise iPO
Since the last offering in November of 2018, they have announced their next offering to be taking place in late September of 2019. The exact date and price per share for the offering has not been confirmed. Fundrise has sent out an email stating,
“Finding a balance between providing our existing iPO investors with the opportunity to invest more and allowing new investors the chance to also become shareholders is a challenge…”
“That said, we also want to reward our most loyal investors, and those that continue to grow their Fundrise portfolio, by giving them a chance to increase their iPO investment. To facilitate this, we’re planning to give you an opportunity to increase your investment in the Fundrise iPO in late September, however we expect to limit the total amount you’re able to invest to 50% of the total principal invested in your Fundrise real estate portfolio.”
It seems they will limit the amount of shares investors can buy based on how much you have invested in your Fundrise real estate portfolio. The maximum amount you will be allowed to invest will be 50% of the total principal invested in your real estate portfolio. In my case, I have $16,500 invested principal so my maximum amount I can purchase will be $8,250.
Conclusion
Fundrise is a fairly young company and investing in it’s iPO does come with risks. This is an illiquid investment and should only be considered as a long term investment.
The goal for me with this investment is to wait out in hopes for the company to go public someday. This is a long term investment with a minimum outlook of 10 years. And even then I may not sell.
My investments in Fundrise does not exceed 1% of my total investments so I’m fairly comfortable with the risks I am taking here. This is part of my speculation investment funds, seeking that potential home run return. It’s important that you understand the risks and invest accordingly!
Any Fundrise shareholders out there? What are your thoughts on the company’s future outlook and will you be purchasing more shares on the upcoming iPO? Love to hear and learn from you guys! Thanks for reading!
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10 Comments
Joel
I’m thinking of buying the iPO but I only have $1,000 invested, will I need to invest an additional $1,000 so 50% of my investment meets the minimum iPO purchase of $1,000? Really enjoying this site, thanks!
Kevin
Hi Joel,
Im not 100% sure but I would assume so. Thanks for stopping by!
Chris
I also have $1000 in my portfolio, making me eligible for the upcoming IPO. An e-mail from Fundrise today says I’m able to invest up to $1002 in the IPO but it will have to be new money and can’t come from my portfolio. Do I have to add funds to my account or can I just invest in the IPO with the understanding Fundrise will take directly from my bank account?
Kevin
Hi Chris,
Yes you can invest in the iPO by having your funds withdrawn from your external account.
Babbit
You can’t sell it, so right now you 5k is worthless, $0. You have them money with no ability to recoup unless they let you. They can says it’s up 309%….it’s still worthless unless you can liquidate it, aka sell it.
Michael DeFlavia
That is true of any private equity investment. I have $10,000 invested myself. I do not count it as an asset since you never really know if they will go public. Fundrise has answered the obvious question by stating that the path they are on now would lead them to an IPO in 24. However, they qualified that!
Vincent
I have almost $5000 in my fundrise account and got offered to invest in the company in a few around the week of March 15. I’m debating if I should put $1000 from my portfolio. It would be nice to own parts of the company with my portfolio growing. We’ll see how it goes as far the company and the real-estate market.
Travis Kahle Millward
The thing that I don’t understand is whether previous investors are diluted each new round. I can’t tell if there is a cap on the total shares available. If not, don’t they just end up diluting their existing shareholders each time they offer a new round?
Daffyd Liam
I bought in to the IPO at $9.09 per share. According to their site the latest offering was at $10.90. Anyone know were these mumbers come from or if they are planning more offering s?
Giacomo Geki Leoni
I will be moving abroad and will be looking to sell some privately owned shares, below the going rate, rather than having to redeem them for a lower price. If anyone is interested, I can be in touch.