Yesterday, we announced the closing of a new round of financing that has been more than a year in the making. Raising $118 million in new capital positions Groundfloor to continue accelerating our expansion into new products and new markets at an even greater scale than we achieved last year. We’re certainly excited about the benefits of this additional financial strength for our customers, employees, and shareholders.
For the long term, however, the source and structure of this capital is even more important than its amount. In 2021, our base of 154,000 investors supplied $260 million in capital to finance the redevelopment or construction of 1,187 houses across the U.S. They also invested $12.2 million in equity into Groundfloor, increasing our customer ownership to over 30%. Our new strategic partner Medipower is now joining them to add $5.8 million in equity capital for the company as well as $100 million of real estate debt investments on our platform.
Unlike competing platforms, the future of Groundfloor doesn’t lie in the hands of large financial interests who can call the shots in our lending or any other aspect of our operations or strategy. This was very much by design, going all the way back to when Nick and I first met and conceived the concept in October 2012. We hypothesized back then — and know for certain now — that individual investors would assert the power of their massive aggregate scale to counterweight Wall Street.
We believe that capital markets should be structured more like the internet itself. Routing capital via millions of self-determining nodes is superior to allowing a dangerous dependency upon a few large points of failure. Our approach is on the right side of history. “Too big to fail” is being replaced by “too broad to fail.”
Securing and maintaining Groundfloor’s independence to build a better capital market often came at the cost of delayed growth and criticism from those who advocated for the conventional wisdom of the typical path that runs through institutional capital. But in the wake of the economic disruptions stemming from the pandemic, it was the unique source and structure of our capital that enabled us to survive and then thrive amidst the chaos. We’ve emerged stronger and better positioned than ever.
Fostering a level playing field in finance at a radically larger scale requires the bigger players on it to accept rules that limit them in the short term, but that benefit everyone over time. We’re proud to welcome a strategic partner in Medipower who honors and values that, and sees the opportunity in it. Medipower has agreed that its risk and returns will mirror those of any other investor who participates in our platform. They’ll play by the same rules, and have accepted limitations that ensure balance and stable growth for the long-term health of our platform and their investment alike.
We predict others will ultimately follow Medipower’s lead. Someday, the conventional wisdom will shift to realize the wisdom of structuring finance this way. The efficiency and stability that results from true openness and equal opportunity in financial markets will become obvious. Our news this week is another indicator that change is afoot. For those of you who are already with us, thank you for believing and investing. With this additional financial strength behind all of us, structured the right way for the long term, we look forward to welcoming millions more to join with us. Onward!
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