Groundfloor Launches Landmark Securities Offering to Enable Crowdfunding of Real Estate Transactions

Path-Breaking Startup Completes Initial Filings with Regulators to Solicit Addressable Market of 43 Million American Investors in Six States

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| Source: Groundfloor

RALEIGH-DURHAM TRIANGLE, NC, April 29, 2014 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE: April 29, 2014

Groundfloor Launches Landmark Securities Offering to Enable Crowdfunding of Real Estate Transactions

Path-Breaking Startup Completes Initial Filings with Regulators to Solicit Addressable Market of 43 Million American Investors in Six States

RALEIGH-DURHAM TRIANGLE, NC - April 29, 2014 - GROUNDFLOOR Inc., a pioneering peer-to-peer real estate lending platform, announces that it has initiated the registration of an offering of securities under federal and state law. Upon successful registration, the offering would be open to participation by more Americans than any other crowd-financed
offering of real estate securities to date.

Solicitation of investor interest under these provisions allows the company to expand its campaign to open the market for real estate investment equally to everyone, regardless of wealth or income. By contrast, most other emerging online platforms specializing in real estate finance rely upon exemptions to securities law that restrict participation to accredited investors.

As defined by current federal regulations, qualifying as an accredited investor requires an annual income of over $200 thousand or a liquid net worth of $1 million. Those standards exclude approximately 98% of the United States population. "We started GROUNDFLOOR with a commitment to building a financial product with benefits available to everyone, not just the financial elite," says Brian Dally, co-founder and CEO of GROUNDFLOOR.

"Today's milestone is the result of that commitment, expressed through the support and unwavering focus of our visionary team of expert legal counsel, faithful angel investors and dedicated board of advisors."

GROUNDFLOOR initially tested and continues to prove its concept under an intrastate securities offering that utilizes the innovative Invest Georgia Exemption. Residents of Georgia are eligible to participate in GROUNDFLOOR's pilot series of small real estate loans for projects based in the state. To date, eligible investors have participated in four loans totaling $200 thousand to fund projects sponsored by local independent developers.

GROUNDFLOOR is now authorized to solicit interest from investors who reside in Arizona, Illinois, Massachusetts and Virginia. In addition, the company is awaiting approval from the state of Pennsylvania. Separate investment opportunities remain open to Georgia residents. Individual investors in these states can see properties available for future investment and sign up for an investor account at www.groundfloor.us. Independent real estate developers nationwide may submit projects to qualify for funding at www.groundfloor.us/develop

About GROUNDFLOOR

Based in the North Carolina Raleigh-Durham-Chapel Hill Triangle and initially launched in Atlanta, GROUNDFLOOR champions democracy, transparency, speed, efficiency and freedom as the path to building a new kind of finance. The company harnesses the breadth and scale of the Web to disrupt antiquated black-box models of financing asset-backed transactions. The innovative GROUNDFLOOR platform reduces dependence upon large financial institutions and accredited investors, while making real estate investing a viable addition to any investment portfolio.

For more information, visit us at www.groundfloor.us, like us on Facebook or follow us on Twitter or LinkedIn.

The information in this press release does not constitute an offer to sell or a solicitation of an offer to make an investment in the securities described herein in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. No such offer or solicitation will be made prior to the delivery of a written offering circular meeting the requirements of Regulation A of the Securities Act of 1933, as amended.

Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of the offering of securities described herein.

GROUNDFLOOR's services do not constitute "crowdfunding" as described in Title III of the Jumpstart Our Business Startups Act ("JOBS Act").

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Jackellyn Trinh, Media Relations



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