March 17, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

It was only in January of this year that AcreTrader announced it had raised $40 million through a Series B to fuel its strategic expansion. Little more than two months later, the company is back in the news, having expanded its latest funding round to be oversubscribed at more than $60 million with the addition of Ohio-based venture capital firm Drive Capital. 

This round represents the second funding close for AcreTrader in close succession, having closed its Series A in the spring of 2021.

Founded by Carter Malloy in 2018, AcreTrader uses crowdfunding to remove the traditional barriers to farmland investing, providing investors, buyers, and sellers unique access to land, data, and tools that create a streamlined, highly efficient experience.

Farmland is one of the largest U.S. real estate sectors, valued at more than $3 trillion. However, access to this investment class has historically been challenging for individual investors. Since its launch in 2018, this business model has transformed the farmland investment space, bridging the existing gaps between investors, farmers, and landowners.

Malloy explained to GAI News in a prior interview that each parcel is put into a unique LLC and investors can purchase a share, “basically an IPO for an individual farmer,” he said. With minimal initial investment cost, the purchase can provide returns from two sources: increased land values and annual rents paid by a farmer.

“Through our online platform, investors buy a portion of a unique LLC that owns a parcel of land – this can be done in just a few minutes electronically,” said Malloy. “AcreTrader handles all aspects of administration, payments, management, etc., making it a truly passive investment.”

Malloy continued, “Minimum investments are typically $20k to $45K, though we have some farms with minimums as low as $10K, and also have investors who have allocated millions on our platform. We ask that investors approach farmland as a long-term investment and hold through the entire holding period that is typically five to 10 years. However, if an investor does need to sell after the minimum lockup period, they can do so directly to others.”

Over the past year AcreTrader has seen massive growth, with revenues growing by a factor of five, its customer base tripling in size, and the amount of land going live on its platform doubling. The company also announced the launch of its land brokerage platform AcrePro, making it even easier for agents, buyers, and sellers to assess, sell, and purchase land, and has plans to soon launch a first-of-its-kind geospatial analytics platform.

“We are so happy with our team and all of their accomplishments, and we look forward to using this funding and momentum to further expand our technology and talent,” said Carter Malloy, founder and CEO, AcreTrader. “We are excited to continue providing differentiated data, technology, and expertise for land sellers, buyers, and investors as we focus on creating great outcomes for these important partners.”

Over the past two years AcreTrader’s team has also seen significant growth, expanding 10x with the addition of experts at the intersection of finance, agriculture, and technology. The most recent additions to the team include Elizabeth Slape in the role of chief marketing officer, and Morgan Scholz as vice president of human resources.

The capital gained in quick succession through its two recent funding rounds will be used by AcreTrader to finalize a land mapping and analytics platform that gives farmers, landowners, and investors unparalleled insights and information on the value of land. It also will be used to continue driving the expansion of its team with new talent.

These plans all align with what Malloy told GAI News in early 2021, “We are seeing a surge in interest from investors, landowners, and farmers. Our long-term plans for farmland are simple: access, liquidity, and transparency.”

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– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.