Fund.me, an international real estate investment platform, has announced a $50million real estate fund in partnership with global blockchain innovators Bloqhouse of the Netherlands, and ChromaWay of Sweden. The fund was launched at the Dubai FinTech Summit that took place at the Madinat Jumeirah in Dubai, UAE. Following the event, The Fintech Times sat down with the company’s CEO to learn why it was created and the reason for its launch at the Summit.
“This is one of the first blockchain offerings ever focused on the US housing renovation market. It has demonstrated gains of more than 40 per cent over the past five years,” said Manly Danh, founder and CEO of Fund.me. “The platform represents a pioneering approach to fintech. It gives investors access to luxury real-world assets through the power of blockchain technology within a risk-mitigated environment.”
When speaking to The Fintech Times, Danh explained how the idea for the fund came about. Historically, in a typical fund, when an investor decided to invest in a fund, there would usually be a lockup period of five to seven years. During this time, they would not be able to call their capital if needed or sell their portion of the fund. However, by using blockchain technology, these issues can be avoided.
“After a year of being in the fund, investors are able to liquidate to whomever they want. If they wish to stay in the whole term of the fund they can, but if they want, they can also sell to another investor, to their peers, or to an investor from our pool of investors,” explained Danh. “We chose to use tokenisation as we want to create a transparent way of investing into a fund. All the while giving our investors a way out if they want.”
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