Deferred, the first technology-powered Qualified Intermediary transforming 1031 exchanges for everyday real estate investors, has announced the successful raise of $3.6 million in seed funding. This significant funding round will accelerate Deferred’s mission to democratize real estate investing, bridging the gap between institutional and individual investors and offering broader access to valuable tax advantages.
Strong Backing from Leading Venture Capitalists
The funding round was led by prominent venture capital firms B Capital and Fika Ventures, with additional investments from strategic players, including founders and executives from innovative companies like Ramp, Zillow, SoFi, Compass, Opendoor, Plaid, and Newfront.
Founded in 2024 by seasoned PropTech entrepreneurs Judd Schoenholtz, Alex Farrill, and Aaron LaRue, Deferred is reimagining the traditional 1031 exchange process by offering a secure, efficient, and accessible platform for investors at all levels.
Addressing a Critical Gap in the Real Estate Market
Despite the 1031 exchange market representing over $100 billion in annual transaction volume, less than 10% of eligible real estate transactions utilize this tax-deferral strategy, according to the National Association of Realtors. Deferred aims to change this with its modern, software-driven platform.
Key innovations introduced by Deferred include:
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AI-Driven Compliance and Automation: Simplifying and streamlining manual tasks to make exchanges seamless.
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Robust Fund Security: Implementing secure transaction systems to prevent fraud and enhance transparency.
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No Fee Exchange Model: Removing traditional exchange fees and sharing earned interest with clients.
Leadership Comments on the Milestone
“At Deferred, we’re redefining what it means to be a Qualified Intermediary by combining cutting-edge fintech infrastructure with deep real estate expertise,” said Judd Schoenholtz, Co-Founder and CEO of Deferred. “This funding allows us to open up 1031 exchange opportunities to a broader range of investors, not just institutions.”
Gabe Greenbaum, General Partner at B Capital, praised Deferred’s progress: “In just a few months, the team has streamlined a traditionally complex system, making it more accessible and efficient. Their AI-enabled innovation is precisely the kind of disruption we look to support.”
Arteen Arabshahi, General Partner at Fika Ventures, added: “Deferred is solving a real-world challenge with innovative AI solutions, delivering secure, seamless service for clients of all sizes.”
Strategic Acquisition Strengthens Deferred’s Foundation
Adding to its momentum, Deferred recently acquired Plenti Financial (formerly 1031 Exchange Advantage), a Qualified Intermediary with experience in facilitating nearly 7,000 1031 exchanges. Under the leadership of David Greenberger, a veteran real estate attorney with over 30 years of experience, Plenti brings a strong legacy of compliance excellence and client satisfaction to Deferred’s expanding portfolio.