Realto Inc., the operator of a web-based marketplace for the secondary trading of illiquid real estate and alternative investments, has closed its latest venture round of $4.5 million, bringing the total proceeds raised to date to $8 million.
The round was led by venture capital firm, Firebrand Ventures, and included investments from KCRise Fund and other contributors. The previous $3.5 million round, which closed in December 2020, was led by Gary Fish and JE Dunn.
“We’re excited to welcome these important investors as we continue to expand our robust trading capabilities across the universe of alternative products,” said Brian King, chief executive officer. “These proceeds will be used to fund growth and expansion, including the hiring of important personnel across the Realto organization.”
King added that John Fein, a managing partner at Firebrand, joined the Realto board.
“We are thrilled to lead this round in Realto,” Fein said. “The team has deep experience building exchanges and facilitating commercial real estate transactions, and is targeting a huge addressable market of traditionally illiquid real estate and other alternative assets. The Realto platform is poised to unlock billions of dollars of value for their customers and we’re very excited to support their growth.”
In November, Realto received broker-dealer approval from the Financial Industry Regulatory Authority, clearing the firm to launch. The following month, the platform went live with trades in Phillips Edison & Co. (PECO) Class B restricted shares. In January, Realto received clearance from the Securities and Exchange Commission to operate an alternative trading system.
Realto Securities LLC, a subsidiary of Realto, provides investors with the ability to trade traditionally illiquid real estate and alternative securities.