Arrived Homes Stock: How to Invest Before the IPO
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Learn about the early-stage fintech startup Arrived Homes*. Explore potential ways to own Arrived Homes stock before the IPO, including equity crowdfunding offering at WeFunder.
Table of Contents
About Arrived Homes
Arrived Homes is a Seattle, Washington-based fintech crowdfunding platform that empowers individual investors to invest in rental homes and vacation rentals.
It’s the first company to offer the general public shares of single-family rental homes. The platform caters to people who want to invest in real estate but don’t have the money or patience to buy and manage an entire rental property alone.
Crowdfunding enables investors to start small in owning real estate instead of buying properties alone, hiring a manager, or becoming a landlord.
Other real estate crowdfunding platforms, such as Fundrise, offer non-accredited investors access to non-traded REITs that pool residential properties into one large security.
The EquityMultiple investing platform and CrowdStreet give accredited investors direct access to premium commercial multifamily real estate properties.
But Arrived Homes differentiates itself by offering non-accredited investors the opportunity to invest in individual single-family homes and vacation rentals.
Arrived Homes allows investors to pick and choose individual property investments as if they were buying real estate on their own. The minimum for each property is just $100.
It’s free to sign up and browse properties.
With such a low minimum investment, investors can diversify around the U.S. with different single-family homes and vacation properties.
My Arrived Investment Experiment
Learn more about investing on the platform: Arrived Homes review.
I also share the details of my personal Arrived investment account. Follow along as I share my Arrived Homes returns.
Check out this YouTube video where I screen share my Arrived portfolio.
Arrived Crowdfunding at WeFunder
Arrived sent an email to its investor base on May 22nd, 2023, about the opportunity to invest in a private funding round on the WeFunder equity crowdfunding platform.
The initial offering is intended only to gauge interest at a $100 million valuation.
… the goal is to offer our valued clients the opportunity to invest in our company rather than seek additional investment capital for operations, we have a limited amount of capital that we are able to raise, with a maximum total investment cap of $500,000.
Investors indicated interest by submitting an investment amount through the WeFunder invest button. But were instructed to wait to wire money.
UPDATE: The Arrived/WeFunder investment opportunity is live. If you previously indicated interest in investing, now is the time to put up your money. The due date is showing as April 16th, and they are pushing hard for us to invest immediately (lots of emails).
If you are eager to invest, do it now. If you’re still thinking about it, April 16th is the hard date, but the deal may fill up before then. So invest now if you’re planning to invest!
UPDATE: On March 8th, 2024, the WeFunder pitch was updated to tell investors they are getting close to accepting funds. Potential investors need to validate their accreditation status. Accredited investors will be allow to invest up to $5,000. Non-accredited can only invest $500, capped at $1.2 million (for non-accredited).
It’s unclear what the upper limited on total investment will be. They had previously said $1 million total, but are now saying $1.2 million for non-accredited.
UPDATE: On August 10th, 2023, Arrived updated investors on the WeFunder fundraise.
They received more than $10 million in reservations from more than 2,700 investors.
Due to significant demand, they increased the round to a $1 million limit from $500,000. $1 million is the maximum they are allow to raise this way, according to securities regulations.
As a result, they are capping the investment round at $500 per investor.
Investors can now fund their investment via their WeFunder account.
Ownership
Arrived Homes is a privately held company. Owners include the founders, institutional investors, crowdfunding investors, and employees.
Prominent venture capital investors include Forerunner Ventures, Core Innovation Capital, PSL Ventures, Good Friends (Founders of Warby Parker, Harry’s, and Allbirds), and Neo.
Arrived Homes also boasts an impressive list of angel investors, including Time Ventures (Marc Benioff of Salesforce), Bezos Expeditions (Jeff Bezos of Amazon), Spencer Rascoff (Founder of Zillow), and Dara Khosrowshahi (CEO of Uber).
The latest funding round, a Series A, raised $25 million. Arrived Homes has also raised multiple debt financing rounds to help purchase more homes to meet investor demand.
Arrived launched a crowdfunding campaign on WeFunder in May 2023. The deal added up to 2,000 platform investors combined to be approximately 1% equity owners alongside the venture capital firms.
Valuation
The May 2023 WeFunder campaign indicated a pre-money Arrived Homes valuation of $100 million. Demand outpaced supply at this valuation.
Several factors may impact the next funding round, including active customers, home purchase availability, and investor demand.
IPO Potential
The Arrived Homes IPO date is currently unknown and likely years away. The company is still in the early stages of growth, proof of business plan, and operations.
The author does not expect an Arrived Homes IPO in the next three to five years. We expect at least two more private funding rounds to fuel growth before an IPO. Private funding rounds typically occur about every two years.
Private investor demand may drive platform growth. The company’s ability to scale depends on its response to demand and how it can acquire enough properties to satisfy investors. Single-family home inventories remain tight as owners cling to their low 30-year mortgage rates.
Markets are still absorbing the impact of higher interest rates. Higher rates favor a platform such as Arrived Homes because its investor pool can fund property purchases instead of relying on borrowing.
If the company decides to pursue a public listing, watch for reporting about exploring a possible IPO with investment banks or a confidential S-1 filing with the SEC.
Bookmark this page for the latest developments.
How to Invest in Arrived Today
Investors cannot invest at the moment.
Arrived Homes is an early-stage private company. These typically raise money from angel investors and venture capital firms. Furthermore, the company is too young for early investors to cash out via pre-IPO marketplaces.
The angel investors are some of the wealthiest business leaders in the world. They do not need liquidity.
When wealthy investors stake money in early-stage companies such as Arrived Homes, they are looking for home runs, not singles. The investments from these leaders indicate the company has significant potential,
Look for additional venture capital equity financing rounds before private shares become available.
I suspect we will not see pre-IPO share access until the company announces a Series B or C round.
However, there may be opportunities to invest before the IPO.
1. Invest if Arrived Homes Crowdfunds Itself (Again)
PREDICTION CAME TRUE!
On May 22nd, 2023, Arrived sent its investors an email about gauging interest in investing in the company on WeFunder.
Loosened securities laws have enabled startups to raise money creatively. For example, Fundrise conducted a funding round for itself through its own platform.
Arrived Homes is proving itself to be a savvy regulatory filing entity, having to qualify each of its properties.
Therefore, the company has looked to its investor base to raise money, similar to what Fundrise did.
Customers on the platform have the first (and likely only) opportunity to invest.
Watch for another equity crowdfunding round in the next 12 to 24 months.
2. Access shares via late-stage pre-IPO investing platforms
The author has not seen evidence of Arrived Homes stock being available on pre-IPO late-stage investing platforms. But it has been available on WeFunder, an equity crowdfunding platform.
Shares may become available on later-stage platforms as the company grows and raises more private funds.
Investors can monitor pre-IPO investing platforms such as EquityZen, Hiive, Equitybee, Forge Global, and Linqto for share availability.
Expect to pay at least a $10,000 investment minimum. In some cases, the minimum investment is much higher.
Signing up for online access to pre-IPO data is free.
Non-accredited retail investors can own pre-IPO companies by owning the Fundrise Innovation Fund.
However, individual pre-IPO companies cannot be selected, and Arrived Homes stock is currently not present in either portfolio.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
3. Participate in the Arrived Homes IPO through a broker
Arrived Homes conducted a private funding round in May 2022. I expect at least two more private rounds before whispers of an IPO reach Wall Street.
Venture capital firms and individual investors have invested in Arrived Homes and may eventually seek to liquidate ownership in the coming years when market conditions favor IPOs.
This event is at least three to four years away if Arrive Homes proves it can effectively scale.
IPO investors may find opportunities to invest during the IPO when it arrives — acquiring shares at the IPO price the day before the stock begins trading on the open market.
Once a privilege of the affluent clientele of Wall Street, IPO access has become increasingly accessible to retail investors.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
4. Buy the stock after the IPO
Most investors will not acquire pre-IPO shares or receive an allocation during an IPO if it ever happens.
The best chance of ever owning Arrived Homes stock is to wait for an IPO and buy the stock after it begins trading.
However, an IPO is a long way off. The company must demonstrate significant progress from where it is today before considering an IPO.
Frequently Asked Questions
Is Arrived Homes stock publicly traded?
No. Arrived Homes is an early-stage private company.
In the meantime, you can check out the most recent S-1 filings in our S-1 filings feed.
What is the Arrived Homes stock symbol?
There is no Arrived Homes stock symbol yet because it is a private company that has not taken steps toward an IPO SEC filing.
Here are a few Arrived Homes ticker suggestions that appear to be available in the U.S.:
- ARVD
- ARRV
What is the Arrived Homes Stock Price?
A public Arrived Homes stock price does not exist because the company is private.
However, the deal terms in the May 2023 equity crowdfunding round indicate a share price of $14.80/share.
Should you Invest in Arrived on WeFunder?
Private investing involves significant risk. Carefully consider this opportunity before committing money. Startups can go belly up, and you can lose your entire investment.
Do not participate in equity crowdfunding with money you cannot afford to lose.
Expect this to be a high-demand short-term situation. The deal will not last long. Respond quickly to any communication from Arrived or WeFunder.
Full disclosure: I have personally invested in Arrived during the crowdfunding process.
Is Arrived Homes Legit?
Yes. All Arrived Homes securitized properties are scrutinized and qualified by U.S. government regulators at the Securities and Exchange Commission (SEC).
Each property on the platform is placed into an LLC, and investors own a portion of that entity. It’s all legal and regulated.
Read the Arrived Homes SEC offering circulars here.
Where is the Arrived Homes S-1 Filing?
Arrived Homes has yet to release an S-1 filing to the public. The filing is likely years away.
However, Arrived Homes is developing an internal capability to file with the SEC, which could make it more comfortable with filing for an IPO earlier than most companies.
News of a confidential or public S-1 filing would kick off the IPO process, suggesting the IPO could occur during the following two to six months.
When the company releases the S-1 filing to investors, we’ll link to and embed the document on this web page.
Notable Arrived Homes News
05/23/2023: Arrived Crowdfunds Itself on WeFunder
05/17/2022: Arrived Homes Nets $25M Series A
12/16/2021: Arrived Raises $100M In New Credit Financing Program
06/16/2021: Arrived Announces $37 Million in Seed/Debt Funding
Additional Resources
- 11 Fintech startups in the IPO Pipeline
Conclusion
Investors become interested in buying companies riding extraordinary macroeconomic trends (real estate crowdfunding).
But acquiring ownership in Arrived Homes pre-IPO is an unlikely endeavor at this early stage of the company.
The best opportunity, for now, is to become an investor on the platform and hope the company plans to self-fund through its platform investors.
Temper your expectations if you’re inclined to pursue pre-IPO equity in Arrived Homes. You’ll likely need to wait for the IPO, which could be many years away.
Good luck if you wish to buy Arrived Homes stock before the IPO. Invest in pre-IPO and IPO companies at your own risk.
Disclosure: The author is long Arrived Homes equity via the May 2023 Wefunder crowdfunding campaign.
Craig Stephens is a former IT professional who left his 19-year consulting career at the IRS to be a full-time finance writer. A DIY investor since 1995, he started Access IPOs in 2016 to provide a resource for ordinary investors pursuing access to IPOs. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Learn more about Craig.
Risk Statement: Investing in IPOs and pre-IPO startups involves significant risk. Do not invest in companies based solely on what is included in this article. Only invest in IPOs and pre-IPO companies with money you can afford to lose. Access IPOs is for informational purposes only. Mentions of specific investments should not be construed as financial advice. Conduct personalized research and consider consulting with an investment advisor before investing.