Groundfloor SMB Growth Fund
Own the Upside of a Growing Business.
A distinctive, high-yield growth opportunity — curated, capped, and open to accredited investors for a limited window. The Groundfloor SMB Growth Fund targets a 13–15% net IRR through revenue-based investing in proven multi-location businesses — a vertical typically closed to retail. You commit once and Groundfloor handles the rest. Experience the upside of a growing business, none of the headaches.
13-15%
Quarterly
Distributions
Year Term
Engineered for Earnings.
Most private market funds leave your capital idle for 6-12 months (or longer) while they deploy capital. We, on the other hand, are pairing this investment with a 6-month, 8% Groundfloor Note, so your money is earning starting day one while the underlying fund deploys dollars.
- 13–15% target net IRR, with quarterly cash distributions throughout the term
- 6-month, 8% Groundfloor Note paired with every commitment — capital earns from week one
- Revenue-Based Agreements that accelerate as operators grow, not fixed-coupon loans
- Zero capital calls — Groundfloor's SPV absorbs every wire, deadline, and unfunded balance
- 1099-INT reporting, not K-1 — no partnership return, no state nexus, no April delays
- 8% preferred return clears as the priority floor before Groundfloor earns any promote
What $100,000 Could Become at a 14% Target Net IRR
Hypothetical illustration only. Reflects a 14% target net IRR (midpoint of the 13–15% range) on a $100,000 investment, including the paired 6-
month, 8% Groundfloor Note during deployment. Not a guarantee of future results. Actual investor outcomes will vary.
Six structural advantages.
A curated structure that doesn't exist anywhere else for retail.
Growth exposure to a working operating layer — without owning the business.
Diversification into a vertical typically closed to retail.
Innovative pairing — capital never sits idle.
Zero capital calls. We absorb the operational layer.
Structured around how sophisticated investors actually want to allocate.
The conversation behind the fund.
Groundfloor’s CEO Brian Dally sits down with Michael Davis, CEO of Homegrown (OP), to cover all things revenue-based investing with SMBs — how the underlying fund works, why this category has historically been closed to retail capital, and what makes the Groundfloor SMB Growth Fund structurally different.
The Operating Partner
multi-location businesses through revenue-based capital.
0
Defaults to Date
71%
$14.4M
Returned to Investors
25%
0
Defaults to Date
25%
Portfolio IRR
14.4M
50+
Locations Enabled
$8.2M
Returned to Investors
71%
Repeat Funding Rate
Past performance is not indicative of future results.
Institutional access — structured and managed by Groundfloor.
Groundfloor sourced, structured, and independently underwrote the SMB Growth Fund to give accredited investors access
to a category typically unavailable to retail capital.
Sourced, structured, and built by Groundfloor.
02 · INDEPENDENTLY UNDERWRITTEN
The numbers are our numbers.
You commit once.
We do the rest.
Private Market Access Without Private Market Friction.
No capital calls. No ongoing wire deadlines. No K-1 partnership filings. Just quarterly distributions and exposure to growing real-economy businesses.
From Subscription to Distribution
— Managed end-to-end.
From Subscription to Distribution — Managed end-to-end.
Groundfloor Built The
Access Layer
- Groundfloor sources, structures, and manages the investment vehicle that gives accredited investors access to institutional SMB Finance — a category typically unavailable to retail investors.
- Investors commit once through a Groundfloor-managed SPV while Groundfloor handles the operational complexity, capital administration, and underlying fund mechanics behind the scenes
Groundfloor
Homegrown SPV LLC
- $20,000 minimum investment with $5,000 increments
- One-time commitment structure — no ongoing capital calls to manage
- Quarterly cash distributions
- 1099-INT reporting, not K-1
- Investor capital paired with a 6-month, 8% Groundfloor Note during deployment so capital is not sitting idle
Revenue-Based Business Expansion
The underlying fund deploys capital through Revenue-Based Agreements (RBAs) with established multi-location businesses, including restaurants, regional coffee chains, fitness operators, and other growing brick-and-mortar brands.
- Restaurants
- Regional coffee chains
- Neighborhood gyms
- Other real-economy operators expanding into new markets
Revenue-share agreements are secured against current and future revenue streams across operator locations, aligning investor outcomes with business performance and long-term growth.
Quarterly Cash Flow & Fund Lifecycle
Timeline Overview
- Investors subscribe during the offering window
- Capital begins earning through the paired 8% Groundfloor Note during deployment
- The underlying fund deploys into revenue-based agreements with expanding businesses
- Investors receive quarterly cash distributions throughout the fund term
- Capital is returned over the projected 4–5 year investment lifecycle
Reserve your allocation before
the window closes.
Reserve your allocation before the window closes.
Hard-capped at $1M in total commitments.
The investing window opens June 8 and closes July 10, 2026, or earlier when fully subscribed.
- Targeting a 13-15% Net IRR
- Accredited investors only
- Limited cap · ~50 investors
Why Revenue-Based Agreements?
Each agreement is secured against current and future revenue streams across operator locations, creating alignment between investor outcomes and long-term business performance.
The story behind the launch.
Groundfloor Launches SMB Growth Fund:
Read the release →
FOUNDER NOTE
Why Groundfloor Built the SMB Growth Fund:
CEO Brian Dally on why now, why SMB Finance, and why this is the kind of investment most accredited investors have never been offered.
Read the note →
DEEP DIVE
Revenue-Based Agreements, Explained:
Read the release →
Backed by results.
Built for the long-term investor.
For more than a decade, Groundfloor has built and run private market investment products for retail and accredited investors. The numbers below reflect what that durability looks like in practice — capital deployed, dollars returned, and consistent growth through every market cycle.
13+
Since 2013, through every market cycle
$2.2B+
Investor capital deployed across the platform
Recognized by Inc. 5000 six years running
Accredited and non-accredited investors
How long has Groundfloor been operating?
How much capital has Groundfloor moved for investors?
More than $1.7 billion in total investor capital has flowed through Groundfloor products since 2013, and over $1.1 billion has been returned to investors. In 2025 alone, Groundfloor Notes paid $8.4 million in interest — every scheduled principal and interest payment delivered on time.
How Is Groundfloor Growing?
The story behind the launch.
1. What is the Groundfloor SMB Growth Fund?
2. What is revenue-based investing?
3. What kinds of businesses does the fund invest in?
The underlying fund focuses on established multi-location businesses expanding into new markets. Businesses may include regional coffee chains, neighborhood gyms, restaurants, and other real-economy operators using revenue-based financing to support growth.
4. How does Groundfloor manage the investment?
5. What are the target returns and investment terms?
Reflects the operating partner’s existing portfolio prior to this Groundfloor-structured fund.
Past performance is not indicative of future results.
