Akru

Akru is a financial technology company that operates an online platform for fractional investments in commercial real estate, founded in 2018 by Mohsin Masud. Based in Cincinnati, Ohio, the firm targets accredited investors, registered investment advisors (RIAs), wealth managers, and institutional advisors, aiming to lower the typically high barriers to entry in the commercial real estate market. Masud, who serves as CEO, has a background in real estate investments and development, with executive education from Harvard and Oxford in real estate finance and blockchain strategy, respectively.

The company's core business revolves around the tokenization of real estate assets. Asset owners can list their properties on the Akru platform, where the company conducts due diligence. Approved properties are then fractionalized into digital tokens, with each token representing a share of ownership in the underlying property. This model allows investors to purchase shares in specific commercial properties, such as multifamily, mixed-use, or warehouse buildings, with a minimum investment of $1,000. Akru's revenue is generated through this process, which enables asset owners to unlock capital without selling their entire property and gives investors access to deals previously limited to high-net-worth individuals.

The Akru platform features a multi-token architecture that utilizes blockchain technology to ensure security and manage transactions. It employs security tokens to represent ownership in each unique property and a utility token, AKUSD, to represent US dollar balances for seamless transactions. A key differentiator for the platform is its secondary marketplace, which is designed to provide liquidity by allowing investors to trade their property tokens with other users, a feature not common in traditional real estate investments that often have long holding periods. Furthermore, the company leverages artificial intelligence for due diligence and for monitoring asset performance, including tenancy and maintenance issues. Akru also manages compliance and reporting for asset owners, including the distribution of end-of-year tax documents like K-1s.

Since its launch, Akru has raised $2 million in funding over two rounds, with notable investors including Draper Goren Holm. The platform currently serves accredited investors under the Reg D exemption, with plans to expand to retail investors in the future. By creating a digital record of ownership on an immutable ledger, Akru ensures that investors' ownership is protected even in the unlikely event the company ceases operations, as the assets are held in separate legal entities. Keywords: fractional real estate, real estate tokenization, commercial real estate investing, property shares, blockchain real estate, secondary market real estate, accredited investor platform, real estate liquidity, digital securities, asset-backed tokens, Mohsin Masud, Cincinnati fintech, real estate investment platform, property tokenization, alternative investments, investment diversification, securitized real estate, real estate crowdfunding, fintech, PropTech