Seattle-based technology company Arrived has secured $27 million in fresh capital to advance its platform that functions as a “stock market for real estate.” The funding round was spearheaded by Neo, with participation from existing investors including Forerunner Ventures, Bezos Expeditions, Core, and additional backers. This brings the company’s total capital raised to over $60 million.
The platform, previously known as Arrived Homes, enables individuals to purchase fractional ownership stakes in single-family and vacation rental properties with minimum investments starting at just $100. The service provides an accessible entry point into real estate investing without requiring full property purchases or direct property management responsibilities.
Arrived’s business model involves identifying and purchasing rental properties, then managing all aspects including financing
arrangements, property improvements, day-to-day management, and tenant relations. Through the company’s website, investors can either purchase shares in specific properties or invest in diversified pooled funds. Returns come through quarterly dividend payments generated from rental income, plus potential appreciation gains when properties are eventually sold after holding periods lasting several years.
The platform has experienced significant growth since its 2019 inception. Currently, the company reports nearly 900,000 registered users who have collectively invested over $340 million through the platform. More than 550 properties spanning 65 different U.S. markets have been funded, with total distributions to investors exceeding $55 million.
A major development announced this week is the formal launch of Arrived’s Secondary Market, a peer-to-peer trading platform allowing investors to directly exchange shares of rental properties with one another. Following its initial rollout earlier in the year, the marketplace generated substantial activity, with investors submitting over 57,000 purchase and sale orders during its first three weeks of operation.
CEO and co-founder Ryan Frazier articulated the company’s ambitious vision, stating their belief that real estate investment will increasingly shift to digital platforms. He envisions a future where transacting real estate shares becomes as seamless as trading public company stocks, with transactions completing in minutes rather than months.
The company generates income through several revenue channels connected to property acquisition and management activities. These include one-time fees charged during property acquisition and capital raising, recurring assets under management fees calculated quarterly or annually based on property values or investor equity positions, and real estate commission rebates received from seller’s agents during property purchases.
This year, Arrived introduced a “Seattle City Fund” as part of a new product line designed to provide investors with concentrated exposure to specific metropolitan housing markets without selecting individual properties. The company previously raised a $25 million Series A round in 2022, though it has not disclosed its current valuation.
Arrived represents part of a broader trend of technology companies applying fintech, crowdfunding, and fractional ownership concepts to residential real estate. The company faces competition from similar platforms including Landa and Lofty, with the latter positioning itself as a “NASDAQ for real estate.”
The fractional investment model has drawn criticism from some quarters. Detractors contend that converting additional single-family homes into investment vehicles may exacerbate housing affordability challenges by introducing more investor competition into already constrained markets.
The company’s leadership team comprises Frazier, who previously worked at Simply Measured and Sprout Social; CTO Kenny Cason, also from Simply Measured; and COO Alejandro Chouza, who held positions at Oyo and Uber. Additional investors backing the company include prominent executives such as Salesforce CEO Marc Benioff, Match Group CEO Spencer Rascoff, and Uber CEO Dara Khosrowshahi.