Elevate Money

Elevate Money

Early Stage

Real Estate Investing at your Fingertips

Real Estate Investing at your Fingertips

Overview

Raised this Round: Raised: $209,710

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/10/2023

Close Date

04/22/2024

Min. Goal
$150,000
Max. Goal
$1,235,000
Min. Investment

$500

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$15,000,000

Valuation Cap

$20,000,000

Discount

0%

Year Founded

2020

Industry

Real Estate & Construction

Tech Sector

Fintech

Distribution Model

B2C

Margin

High

Capital Intensity

High

Location

Newport Beach, California

Business Type

Growth

Elevate Money, with a valuation of $20 million, is raising funds on Wefunder. The company has developed a platform to democratize real estate investing. Elevate Money sells fractionalised shares of its managed real estate portfolios with Boxabl and empowers investors to build a balanced portfolio and accumulate long-term wealth. The company has a unique partnership with Boxabl and has recorded a 300% average account size growth and 200% year-over-year user growth. Harold Hofer founded Elevate Money in June 2020. The current crowdfunding campaign has a minimum target of $150,000 and a maximum target of $1.24 million. The campaign proceeds will be used for team salaries, product development, marketing, and legal and accounting expenses.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$123,191

$68,333

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-1,604,513

$-734,807

Summary Balance Sheet

FY 2022 FY 2021

Cash

$712,311

$418,634

Accounts Receivable

$0

$0

Total Assets

$1,463,528

$954,796

Short-Term Debt

$91,576

$17,512

Long-Term Debt

$3,841,103

$1,755,103

Total Liabilities

$3,932,679

$1,772,615

Financials as of: 12/10/2023
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Synopsis

Real estate investment has traditionally been a market with a high entry barrier, often requiring significant capital and expertise. Elevate Money seeks to disrupt this paradigm by democratizing access to real estate investing, allowing a broader range of investors to participate in the market. The company has developed a platform that sells fractional shares of managed real estate portfolios, notably in partnership with Boxabl—a company aiming to revolutionize the home construction industry with its modular homes.

Elevate Money's approach not only lowers the financial threshold for investment but also simplifies the process, making it more accessible to the average person. With a focus on income-producing commercial properties, Elevate Money has already demonstrated a commitment to generating returns for its investors, boasting an annualized yield of 6.5% since the inception of its first public fund in 2022.

Moreover, the company's impressive growth metrics, with a 300% average account size growth and 200% year-over-year user growth, speak to a strong market demand for its offering. 

With the proceeds from the current crowdfunding campaign on Wefunder, Elevate Money plans to invest in team salaries, product development, marketing, and legal and accounting expenses. These investments aim to further market expansion and solidify the platform's position in the burgeoning US real estate crowdfunding investment space.

Based in California and backed by Sway Ventures, Elevate Money operates with a B2C distribution model and has already raised significant capital in prior rounds. The company's strategic partnership with Boxabl positions it uniquely in the market, potentially allowing investors to tap into the growth of the modular home building sector as well.

With a valuation cap of $20 million and a SAFE security type, Elevate Money presents an opportunity for investors to participate in a company at the forefront of real estate investment innovation with a vision to enable long-term wealth accumulation for a diverse range of investors.

Next Section: Price

Price

Elevate Money is offering a SAFE (Simple Agreement for Future Equity) at a valuation cap of $20 million. This valuation cap represents the maximum valuation at which an investor's SAFE will convert into equity during a future priced round. The company's revenue multiple of 162.35 based on the last fiscal year's revenue of $123,191 is significantly high, suggesting that the company is overvalued compared to traditional real estate investment standards.

The company's impressive user and account size growth can rationalize the high valuation cap, with a 300% average account size growth and a 200% year-over-year user growth. These metrics indicate strong market adoption and scalability potential, which can justify a premium valuation in a growth-oriented, technology-driven real estate investment platform.

Furthermore, Elevate Money's unique partnership with Boxabl, a modular home-building company with a $3.3 billion valuation, adds strategic value to the company's business model and future growth prospects. This partnership could significantly expand Elevate Money's market presence and enhance its product offerings.

However, investors should be cautious of the high capital intensity level in the real estate industry and the fact that Elevate Money is still in the early stage of its business cycle. The company's pre-profit status and the high valuation cap require a belief in its ability to significantly grow its revenues and achieve profitability to provide a substantial return on investment.

Next Section: Market

Market

Elevate Money is in the rapidly growing US real estate crowdfunding investment market, which presents an expansive addressable market size of approximately $5.68 billion. This market is experiencing a remarkable growth rate of 45%, driven by a growing investor appetite for more accessible and diversified real estate investment opportunities. Real estate crowdfunding platforms, like Elevate Money, are capitalizing on this trend by offering fractionalized shares of managed real estate portfolios, lowering the entry barrier for retail investors, and democratizing access to property investments.

However, the market's high regulatory environment presents a notable challenge, as real estate investments are subject to stringent approval and licensing regulations. This factor will necessitate continuous compliance efforts and could affect the speed and cost of scaling operations for Elevate Money.

Next Section: Team

Team

Elevate Money is spearheaded by CEO Harold Hofer, who brings a wealth of experience with 18 years in the real estate industry. Hofer's background includes a successful exit, which speaks to his entrepreneurial acumen and understanding of the real estate market. 

Supporting Hofer is CMO Sachin Jhangiani, who has four years of relevant industry experience. Jhangiani's role is crucial in driving the marketing strategy for Elevate Money. His full-time dedication to the company and previous experience as a founder, combined with high-level managerial skills, position him well to contribute to the company's growth and user acquisition efforts.

The team at Elevate Money is relatively small, with only four members, but they are supported by eight advisors who likely contribute specialized knowledge and strategic guidance. 

With venture capital backing from Sway Ventures, Elevate Money has the financial support and confidence of experienced investors. This, coupled with the company's significant user and account size growth, suggests that the leadership team is effectively executing its business strategy and is well-positioned to capitalize on the opportunities within the US real estate crowdfunding investment market.

Next Section: Differentiation

Differentiation

Elevate Money distinguishes itself in the crowded US real estate crowdfunding investment market with a strategic partnership that positions it uniquely among its peers. While many platforms offer fractionalized real estate investments, Elevate Money's collaboration with Boxabl, a company with a significant $3.3 billion valuation aiming to disrupt the home construction industry, provides it with a distinctive edge. This partnership allows Elevate Money to offer its investors the opportunity to partake in the potentially transformative modular home-building sector, which is anticipated to grow substantially.

Moreover, Elevate Money's performance since its inception is noteworthy, with the company declaring monthly dividend payments and achieving an annualized yield of 6.5%. This is a compelling selling point for investors seeking recurring income from their real estate investments. The platform's reported 300% average account size growth and 200% year-over-year user growth are testaments to its growing appeal among investors and ability to scale effectively in a competitive environment.

Despite the absence of patents, which is not uncommon in the real estate sector, Elevate Money's business model, focusing on income-producing commercial properties and its B2C distribution model, aligns well with the growing trend of individual investors seeking alternative investment opportunities beyond traditional stocks and bonds. The company's ability to maintain a recurring revenue model in such a competitive landscape indicates a strong value proposition and resonates with investors' desire for stable, passive income.

In conclusion, Elevate Money's unique partnership with Boxabl, solid financial performance, and strategic focus on empowering individual investors to build balanced portfolios for long-term wealth accumulation set it apart in the real estate crowdfunding industry. 

Next Section: Performance

Performance

Despite being in its early development stages, Elevate Money has shown impressive growth metrics. The company has experienced a 200% year-over-year user growth and a 300% average account size growth. These figures indicate a strong market demand for the company's offering and a growing trust in its platform. Moreover, Elevate Money's first fund, focused on income-producing commercial properties, has declared monthly dividend payments with an annualized yield of 6.5% since its inception in 2022, which is a testament to the company's ability to generate returns for its investors.

Financially, Elevate Money has raised $3.86 million in prior funding rounds, which underscores investor confidence in its business model. However, with an annual revenue of $123,191 and a monthly burn rate of $133,709.42, the company operates at a deficit, which is not uncommon for early-stage growth companies. Elevate Money's cash and cash equivalents at the end of the most recent fiscal year stood at $712,311, which provides some runway to cover operational expenses as it seeks to expand its user base and scale its operations.

Elevate Money's performance must be contextualized within the extremely competitive landscape of the US real estate crowdfunding investment market. As the company progresses from its early stage to a more mature phase, its ability to sustain growth, manage burn rate, and continue to attract investment will be crucial for its long-term success.

Next Section: Risk

Risk

Elevate Money's platform presents several risks to potential investors, considering its early stage and the highly competitive nature of the US real estate crowdfunding investment market.

Firstly, Elevate Money's development phase is pre-profit, which means that while it has seen significant user and account size growth, it has not yet reached profitability. This state of the company requires it to rely on external funding to cover its operations, as evidenced by its negative net income.

The company's monthly burn rate is relatively high compared to its annual revenue, highlighting the need for continued capital infusion to maintain its business operations and growth trajectory. The long-term debt indicated on its balance sheet further emphasizes this point, potentially placing pressure on the company's future cash flows and profitability.

While Elevate Money's partnership with Boxabl is notable, reliance on a single partnership can be risky, especially in the early growth phases. Should this partnership face any challenges, this could severely impact Elevate Money's business model and ability to scale.

Lastly, the valuation cap being capped provides some protection for investors, but the high revenue multiple of 162.35 suggests that Elevate Money may be overvalued, which could affect the investment's potential return.

Next Section: Bullish Outlook

Bullish Outlook

Elevate Money is positioned to disrupt the real estate investing industry through its innovative platform and unique partnership with Boxabl. By offering fractionalized shares of managed real estate portfolios, Elevate Money empowers investors to build a balanced portfolio and achieve long-term wealth accumulation.

The company has experienced impressive growth, with a 300% average account size growth and 200% year-over-year user growth. These metrics demonstrate the increasing demand for Elevate Money's platform and the effectiveness of its value proposition. 

With a valuation of $20 million, Elevate Money has attracted investment from notable venture capital firm Sway Ventures. This validation from experienced investors further supports the company's growth potential and market viability.

Elevate Money's focus on income-producing commercial properties has resulted in a solid financial performance. The company declared monthly dividend payments with an annualized yield of 6.5% for its first public fund. This consistent revenue generation and a reported annual revenue growth of 80.28% indicate the company's ability to provide attractive returns for investors.

The market potential for Elevate Money is high, as it operates in the US real estate crowdfunding investment space. Elevate Money is well-positioned to capture a significant share of this growing market with its user-friendly platform and commitment to democratizing real estate investing.

Next Section: Bearish Outlook

Bearish Outlook

Despite Elevate Money's innovative approach to democratizing real estate investing, there are several concerns that warrant a bearish outlook. A revenue multiple of 162.35 for a company at the pre-profit stage seems excessive, particularly when the annual revenue currently stands at a modest $123,191. This valuation suggests that the market has priced in very high expectations for future growth, which may be challenging to meet.

The real estate crowdfunding investment industry is noted to be extremely competitive, with high barriers to entry due to regulatory requirements, the need for significant capital to secure real estate assets, and the trust required to attract and retain investors. Elevate Money's reliance on a unique partnership with Boxabl, while potentially advantageous, also introduces risk. The company's growth trajectory and value proposition could be significantly impacted if this partnership falters.

Moreover, the company's current financial health raises concerns. Elevate Money has a monthly burn rate of $133,709.42, higher than its total annual revenue. Coupled with a net income loss of $1,604,513.00 in the most recent fiscal year-end, these figures suggest Elevate Money is consuming cash at a rate that may not be sustainable in the long run without further capital infusions.

Next Section: Executive Summary

Executive Summary

Elevate Money is an innovative platform in the real estate investment landscape, offering a democratized approach to real estate investing. The company enables investors to purchase fractional shares of managed real estate portfolios, making it easier for a broader audience to build a balanced portfolio and accumulate long-term wealth. This approach is particularly significant given the traditionally high barriers to entry in real estate investment.

With a unique partnership with Boxabl, a $3.3 billion modular home-building company, Elevate Money is positioned to capitalize on the burgeoning interest in affordable and scalable housing solutions. The company's first fund, focused on income-producing commercial properties, has already declared monthly dividend payments with an annualized yield of 6.5%. This performance indicates Elevate Money's potential to generate steady returns for investors.

Despite being in the early growth stage and pre-profit, Elevate Money has shown promising signs of scalability, with a 300% average account size growth and a 200% year-over-year user growth. The company is backed by venture capital, having raised over $3.8 million in prior rounds and showing a substantial annual revenue growth rate of over 80%. However, the company does face a highly competitive market with significant barriers to entry, and it operates at a high capital intensity level.

The proceeds from the current crowdfunding campaign on Wefunder, which has a minimum target of $150,000 and a maximum target of $1.24 million, are slated for team salaries, product development, marketing, and legal and accounting expenses. This funding will be crucial for Elevate Money to continue its market expansion trajectory and solidify its offerings in the real estate crowdfunding investment space.

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Elevate Money on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $20,000,000

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