Fractional, Inc.

Based in the US, Fractional, Inc. provides a collaborative platform for fractional ownership of investment properties, enabling individuals to co-invest in real estate and share both benefits and responsibilities. Founded in 2021 and headquartered in San Francisco, US, Fractional, Inc. specializes in facilitating co-investment in real estate.

The company was co-founded by Carlos Pérez, Chris Roth, and Stella Han, who each bring experience in the investment and real estate sectors. Fractional has successfully completed 3 deals, with its most recent funding round taking place on November 7, 2024, leading to a total amount raised of USD 15. 00 mn from Fifth Wall Ventures, the lead investor. Fractional specializes in the fractional ownership of investment properties, offering a collaborative platform where individuals can co-invest in real estate.

The company's primary service allows motivated individuals to pool resources and expertise to acquire rental properties, sharing both the financial benefits and responsibilities of ownership. Targeting aspiring real estate investors, particularly those like Brianna—who desire to own property but lack the knowledge or means to enter the market independently—Fractional connects users with experienced partners, such as Ian and Frank, who facilitate deal sourcing, financing, and property management. This service aims to democratize real estate investment, making it accessible to a wider audience. The company markets its offerings primarily in urban centers across the United States, in vibrant real estate markets where potential investment opportunities abound.

Fractional generates revenue through a structured partnership model that enables participants to co-invest in properties. Clients engage in transactions where they buy shares in properties, facilitating a collective investment approach. Revenue is derived from both the initial investment contributions and ongoing management fees associated with the properties owned in partnership. As part of this model, clients can expect to receive a share of the passive income generated from rental revenues, proportional to their investment stake.

The company emphasizes a participatory approach, where each member contributes to the success of the investment through various roles, from property management to design enhancement. This collaborative framework allows for a sustainable revenue stream based on co-ownership and the performance of the real estate assets within their portfolio. In November 2024, Fractional, Inc. raised USD 15 mn in series A funding led by Fifth Wall Ventures.

This funding will be utilized to grow the company's user base and expand into new business partnerships. Fractional is exploring the introduction of new products aimed at enhancing the investment experience for users and is focused on expanding into additional urban markets within the United States by the end of 2025.