It's time for the third edition of the Groundfloor Diversification Analysis. Since our last update in January, the number of investor portfolios with at least one repaid loan increased to 3,330, while the number of repaid loans is now 312.
This week at Groundfloor we were thrilled to launch our online public offering, welcoming over 800 new shareholders in our company and adding another $2.5 million of capital to fund our ongoing expansion. With the launch, we’re now embarking on the third and final phase of this round of financing to accelerate our next steps on the audacious mission we set out upon five years ago.
As we look forward to welcoming hundreds more shareholders, many have asked us about the backstory--why we’re financing the company this way and how it all came together.
When Groundfloor was just getting started five years ago, critics and cynics objected with what we nicknamed “the Groucho Marx problem” -- i.e. the idea that no borrower we wanted would ever accept a loan from us. We’ve been lending for four years now, and lending extensively in non-Atlanta area markets for just over two years of that time. As our 2017 Year In Review indicates, volume has grown significantly.
With another year of growth ahead, it’s a good time to ask: How have we done? The data shows the positive impact of ongoing improvements in our risk management, underwriting and asset management: A significant improvement in on-time repayment, without realizing a large reduction in net yield.