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LEX Markets is a technology company.
LEX Markets operates a platform fractionalizing commercial real estate assets into publicly traded securities. This allows investors to buy and sell shares of specific properties, democratizing access to an exclusive asset class. Leveraging robust technological infrastructure, including Nasdaq's Marketplace Services Platform, the company facilitates efficient trading and enhances liquidity. This provides a novel avenue for broader participation.
The company was founded in 2017 by brothers Drew and Dean Sterrett, along with Jesse Daugherty. Their insight stemmed from challenges individual investors faced in accessing commercial real estate. The founders aimed to address prevailing issues of limited access and illiquidity, establishing a more transparent investment landscape.
LEX Markets serves a broad spectrum of investors, from individuals to institutions, enabling direct, fractional ownership in commercial properties via a stock market structure. Its core mission is to empower wealth creation by transforming real estate transactions. It envisions establishing the world’s first integrated stock market for commercial real estate, aiming to redefine this asset class for all.
LEX Markets has raised $19.0M across 2 funding rounds.
LEX Markets has raised $19.0M in total across 2 funding rounds.
LEX Markets has raised $19.0M in total across 2 funding rounds.
LEX Markets's investors include James Baboulas, Gaingels, Khosla Ventures, MUFG Innovation Partners, Two Lanterns Venture Partners, Alan Patricof, Joseph Sitt, Early Light Ventures, Flybridge Capital Partners, Primetime Partners, Gregory Coleman.
LEX Markets is a fintech platform that democratizes commercial real estate investing by transforming individual properties into publicly tradable securities, allowing both accredited and non-accredited investors to buy shares starting at $100.[1][2][3][4] It serves property owners seeking capital without losing control and retail investors wanting passive income, diversification, and liquidity in income-producing assets like office and retail buildings.[1][3][4] The platform handles due diligence, IPOs under Reg A+, and secondary trading on an alternative trading system (ATS) powered by Nasdaq technology, with investors earning quarterly distributions from rental income when profitable.[1][3][4]
Founded in 2017 and headquartered in New York, LEX raised $37.88M in funding, reaching Series A stage before shutting down in 2023 and being acquired by Monark.[2][3]
LEX Markets was established in 2017 by brothers Drew and Dean Sterrett, along with Jesse Daugherty, initially under the name LandWright.[1][2] The idea stemmed from the founders' frustration as non-accredited investors unable to access high-value commercial real estate deals reserved for institutions; Drew Sterrett's experience in real estate private equity highlighted market inefficiencies like limited recapitalization options for individual properties.[1]
Early traction included partnering with Nasdaq for its Marketplace Services Platform to enable fast trading and securitization, with a pivotal milestone being the 2021 IPO of 286 Lenox Avenue in Harlem—the first offering open to all U.S. investors.[1][3] The company evolved by leveraging Reg A+ under the JOBS Act to lower barriers for non-accredited investors, raising up to $50M per offering while providing research tools and financial transparency.[3][4]
LEX Markets rode the fintech democratization wave in real estate, fueled by Reg A+ reforms in the 2012 JOBS Act that expanded retail access to private assets amid rising interest in syndication and crowdfunding.[3][4] Timing aligned with post-2020 demand for diversified, income-generating alternatives to stocks, especially as commercial real estate offered inflation protection and low public market correlation.[4]
It influenced the ecosystem by pioneering tradable single-property securities, pressuring competitors like Realty Mogul and CrowdStreet to enhance liquidity and retail tools, while bridging institutional-grade assets to Main Street investors.[2] Market forces like low interest rates (pre-2022) and tech advancements in ATS trading favored its model, though real estate downturns highlighted risks in property-specific performance.[1][3]
Post-2023 shutdown and Monark acquisition, LEX's technology and model likely persist under new ownership, potentially accelerating with renewed CRE stabilization and fintech M&A trends.[3] Rising demand for tokenized real estate and blockchain alternatives could shape its evolution, emphasizing liquidity in illiquid assets amid economic uncertainty.
As a trailblazer in turning buildings into stocks, its legacy endures in opening CRE to everyday investors, with Monark positioned to scale this access in a recovering market.[1][3]
LEX Markets has raised $19.0M across 2 funding rounds. Most recently, it raised $15.0M Series A in February 2022.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Feb 2, 2022 | $15.0M Series A | James Baboulas | Gaingels, Khosla Ventures, MUFG Innovation Partners, Two Lanterns Venture Partners |
| Oct 1, 2019 | $4.0M Seed | Alan Patricof, Joseph Sitt | Early Light Ventures, Flybridge Capital Partners, Primetime Partners, Gregory Coleman |