In the competitive world of startups, getting noticed often depends not only on having an innovative business idea but also on understanding the vast potential of industries like real estate. Rental properties have long been seen as a solid investment avenue, and what serial entrepreneurs like Violetta Bonenkamp immediately recognize is the transformative role technology can play in democratizing access to this industry. Arrived, a startup backed by Jeff Bezos, Marc Benioff, and other heavyweights in the tech industry, is spearheading this change. With its recent $27M funding round and its ambitions to create a "stock market" for rental properties, it's making real estate accessible to everyone, an innovation that's poised to reshape the industry.
From Traditional Real Estate to Digitized Fractional Ownership
Violetta Bonenkamp has often noted that innovation doesn't always mean doing something completely new; sometimes, it's just about fundamentally rethinking how existing systems operate. In this case, Arrived's approach to fractional ownership is doing just that. Traditionally, the real estate industry has been regarded as capital-intensive, with significant barriers to entry like large upfront costs and complex legal processes. However, by allowing customers to buy shares in single-family rental properties and vacation homes for as little as $100, the barriers have dramatically fallen.
Investors receive quarterly dividends from rental income and a share of the asset’s appreciation upon sale, with Arrived managing all logistics such as tenant management, repairs, and financing. According to Arrived’s platform, nearly 900,000 investors have collectively funded over 550 properties, investing $340 million in total, numbers that highlight growing interest and confidence in this model.
A Secondary Market for Shares: Transforming the Industry
What truly caught Bonenkamp's attention is Arrived's introduction of a secondary marketplace for trading shares of rental properties. This feature simulates stock market fluidity within real estate, enabling investors to buy, sell, and trade their fractional ownership almost instantly, a game-changer for liquidity. Launching a secondary market addresses one critical drawback of fractional ownership: the lack of flexibility. Without the ability to liquidate investments quickly, fractional ownership models can deter participation.
Arrived logged over 57,000 trading transactions within three weeks of launching this marketplace, proving the demand for such liquidity in real estate assets. For entrepreneurs eager to enter the investment world but hesitant to lock funds long-term, this step represents a significant breakthrough.
Key Statistics and Market Trends
A glance at the data shows why the timing is right for Arrived:
- $60M+ raised to date: The startup’s consistent fundraising across multiple rounds signals strong investor backing and confidence in its growth potential.
- Rental property appreciation: Rental properties have appreciated more than 30% in key metropolitan areas over the last decade as noted here by industry experts.
- Growing inclusivity: Fractional investing is opening the door for smaller investors, a trend highlighted in market analyses focused on real estate democratization.
Property technology startups are collectively changing the landscape of real estate investment, with competitors like Landa or Lofty creating alternative platforms to address this market.
How Entrepreneurs Can Leverage Fractional Ownership Platforms
Bonenkamp stresses that whether you’re a startup founder, a freelancer, or someone looking for passive income streams, platforms like Arrived offer opportunities to grow investments with manageable risk. Here’s how you can maximize the benefits:
- Start Small: Dive into fractional investments with a modest commitment, you can start with just $100 while testing the waters and learning the dynamics of ownership and returns.
- Monitor Returns Closely: Use any dividends earned to re-invest strategically or expand your portfolio incrementally. Create scalable wealth by leveraging small but consistent gains.
- Explore Pooled Fund Opportunities: Arrived allows investors to participate in regional funds, offering exposure to diversified properties across metropolitan areas. For instance, Seattle's city-focused fund is gaining popularity among passive investors.
- Utilize Secondary Markets: If liquidity is your concern or you want to diversify quickly, use Arrived’s trading platform to rebalance your holdings.
For hands-on strategists, Bonenkamp suggests calculating dividends alongside potential appreciation to assess how fractional shares compare to traditional stocks, this data-driven approach is invaluable.
Pitfalls to Avoid: Real Advice From an Entrepreneur’s Perspective
Bonenkamp's decades-long experience in entrepreneurship shows that even the most promising opportunities come with risks. Here are mistakes to dodge if you’re intrigued by fractional ownership in real estate:
- Neglecting Market Research: Blind investment without understanding how rental property appreciation functions in different areas could result in losses.
- Over-diversifying to Too Many Properties: Beginners often forget that tracking too many small assets can be just as challenging as owning one large one.
- Relying Fully on Passive Incomes: While dividends provide a steady income stream, expect occasional performance dips depending on tenant occupancy and local demand.
- Failing to Investigate Fees: Platforms like Arrived charge both sourcing and management fees, which can diminish overall returns if overlooked.
Disruption’s Wide Reach and Lessons From Europe
One of Bonenkamp’s thought-provoking observations is how Europe’s stricter regulations around real estate and investment could learn from more flexible models emerging in the U.S. While cultural attitudes vary, digitized fractional ownership could still find its place globally due to demand for low-barrier access. For European startups seeking innovation in the sector, Bonenkamp recommends using examples like Arrived as case studies to address unique regulatory and market challenges abroad.
Final Thoughts: The Future Legacy of Startups Like Arrived
With figures like Jeff Bezos and Marc Benioff backing the democratization of real estate, it's evident this form of investment is more than a passing trend. As the founder of CADChain and Fe/male Switch, Bonenkamp sees tremendous lessons entrepreneurs can draw from Arrived, not just in terms of industry disruption but in innovating how value is delivered. Adopting these methods can yield a competitive edge for startups. The goal isn’t simply mimicking success but learning how to strategically navigate industries that are ripe for digitization and distribution.
Through tools like Arrived’s secondary markets, small investors now wield influence that was traditionally reserved for institutions, a true democratization of wealth creation. For entrepreneurial minds, this is both a business model worth exploring and one that raises important questions of scalability, ethics, and global adoption.
If you’re an aspiring entrepreneur keen on harnessing similar models while solving friction points in other industries, you now have a blueprint for stepping into the future of investments through technology.
FAQ
1. What is Arrived, and why is it considered innovative?
Arrived is a Bezos-backed real estate startup that allows investors to buy fractional shares in rental properties for as little as $100, democratizing access to real estate. Investors benefit from rental income and property appreciation while the platform manages logistics like tenant management and repairs. Explore Arrived
2. How does the secondary market feature on Arrived work?
Arrived recently launched a secondary marketplace where investors can buy, sell, and trade shares of rental properties. This provides liquidity and simulates stock market fluidity in real estate investment. The platform recorded over 57,000 transactions within three weeks of its launch. Learn about Arrived’s secondary market
3. Who are some notable investors backing Arrived?
Arrived is backed by major players like Jeff Bezos, Marc Benioff, and Spencer Rascoff. This strong investor backing highlights confidence in its business model and growth potential. Check out the GeekWire article on Arrived’s funding
4. What type of real estate properties does Arrived focus on?
Arrived primarily offers fractional ownership in single-family rental homes and vacation rentals across the U.S. It also introduced metro-based pooled funds, such as the Seattle City Fund, for diversified investments. Learn about Arrived’s property types
5. What advantages does fractional ownership bring to investors?
Fractional ownership reduces barriers to entry by requiring only a modest investment, offers quarterly dividends and share appreciation, and provides more liquidity through secondary markets. It opens real estate investing to casual investors and small-scale participants. Detailed insights on fractional ownership
6. How does Arrived compare to competitors like Landa and Lofty?
Arrived shares similarities with competitors Landa and Lofty by creating platforms for fractional ownership in real estate. These startups leverage technology to create “stock market-style” trading for homes. Explore Lofty
7. What fees does Arrived charge its investors?
Arrived charges sourcing fees during property acquisition and ongoing management fees based on property value or equity. This helps cover the overhead of managing logistics, tenants, and repairs. Discover Arrived’s fee structure
8. How many properties and investors are currently active on Arrived?
Since its launch, Arrived has attracted nearly 900,000 investors who have collectively funded over 550 properties. The total amount invested on the platform exceeds $340 million. See Arrived’s investor stats
9. What risks should investors consider before using Arrived?
Risks include varying rental property performance, potential occupancy issues, and fees that can reduce returns. Additionally, market trends in specific regions should be carefully analyzed before investing.
10. How is Arrived transforming real estate globally despite cultural and regulatory differences?
By focusing on low-barrier access, digitized fractional ownership like Arrived’s model has the potential for global adoption. Entrepreneurs in regulated markets like Europe could adapt similar business models while addressing local challenges. Read GeekWire’s insights on Arrived
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.