CrowdStreet earns revenue in a few different ways.
CrowdStreet sells its software as a subscription to sponsors to reduce their administrative burden (costs) and increase effectiveness in managing multiple deals and even more investors.
CrowdStreet also charges a fee to sponsors to raise money via the CrowdStreet platform. There’s always a “cost of capital” for sponsors, and we’ve made this a very competitive option by leveraging technology to raise money quickly, reliably, and cost effectively. Commonly, we’re replacing what used to be the function of commission-based sales people tasked with raising money.
These two methods don’t have direct fees charged to investors by CrowdStreet. However, given investing in real estate with investors is a sponsor’s primary revenue-generating activity, these fees ultimately are built into a deal.
For investors who happen to choose an option that enlists extra help from CrowdStreet Advisors, CrowdStreet Advisors charges them a fee.