DomaCom partners with New York crowdfunder

In a statement yesterday, DomaCom said its exclusive distribution agreement with Prodigy Network is the start of what the firm hopes to be several overseas property crowdfunding opportunities for Australian investors.

DomaCom chief executive Arthur Naoumidis said, “Whilst crowdfunding is still a relatively new phenomenon in Australia it is gaining significant ground overseas.

“There are over 125 such businesses globally with the 2015 transactions estimated to be around US$2.5 billion up from only US$20 million four years ago.”

DomaCom said it believes Australia is “slowly realising the power of the crowd and the opportunities that it presents to investors”, and hopes to demonstrate this working with overseas crowdfunders like Prodigy Network.

“Enormous buying power exists in our large industry and retail superannuation funds and our growing $600 billion self-managed superannuation fund (SMSF) market,” the firm said.

“There are vast sums of money sitting there, some of which must be looking for an opportunity to invest in global real estate markets.”

Prodigy Network has positioned itself as the leading real estate crowdfunding platform in the United States, after having raised over $410 million of equity from the crowd for their portfolio of assets, which translates into US$750 million in property value, DomaCom said.

“We are excited to be working with such strong senior management who share our common views on democratising real estate. We think partnering with DomaCom makes a lot of sense given their strong reputation and scalable distribution network in APAC,” Prodigy Network’s vice president of client relations Leonard Chinchay said.