New York-based real estate startup Cadre just raised $65 million in Series C funding led by Silicon Valley venture capital heavyweight Andreessen Horowitz, TechCrunch reports.
Along with Andreessen Horowitz, Cadre also secured cash from other heavyweights, including Jim Breyer of Breyer Capital and Goldman Sachs, according to TechCrunch. The Ford Foundation, Thrive Capital, General Catalyst Partners and Khosla Ventures also joined the round.
Cadre was co-founded Goldman and Blackstone alum Ryan Williams (pictured), along with Jared and Joshua Kushner. The startup came under a bit of infamous notoriety as being one of the assets that Jared Kushner, President Trump’s son-in-law, did not disclose in his government financial-financial disclosure form when he was brought on as a White House adviser.
Jeff Jordan, a general partner at Andreessen Horowitz, elaborated in a blog post on the VC’s interest in Cadre. He noted that commercial real estate returns have outperformed the S&P 500 over the past three years, but direct investment is mostly inaccessible to most retail investors
Meanwhile private equity “and REITs that do offer investors commercial real estate exposure typically feature very high fees, little or no liquidity, and are a ‘black box’ that permit no investor discretion on individual deals,” Jordan writes.
Cadre is designed to give accredited investors direct access to slices of individual commercial real estate investments, allowing deal-by-deal discretion. While targeting the same size investments, Cadre’s fees are significantly lower than its analog competitors and it offers deep transparency. And the company is in the process of refining functionality that will give these investors the potential for liquidity during the life of the investment. This all makes us believe that the Cadre value proposition for investors is far superior to that of existing options, and will — like other digital marketplaces before it — disrupt less efficient analog incumbents.
Although Cadre mostly services high-net worth investors, CEO Williams has told TechCrunch that the firm could attract a more diverse investor base over time.