Technology

Landa promised real estate investing for $5. Now it’s gone dark.

The idea of becoming a real estate investor for as little as $5 may seem too good to be true.

And for many users of Landa, a proptech company that promised just that — it has been.

Landa emerged from stealth in August 2022, announcing a total of $33 million in funding and a pledge to help everyday Americans access residential real estate investment through fractional shares.

CEO Yishai Cohen and former CTO Amit Assaraf founded Landa in 2019 in an effort to make real estate investment more inclusive. The app’s only requirements were that users be over age 18 and U.S. residents. They could start investing with just $5, and buy and sell shares as well as see real-time updates on their properties from the Landa app. (Assaraf left the company in December of 2023, according to his LinkedIn profile. He has not responded to requests for comment.)

Today, Landa’s investment portal site is down and its app is inoperable. Users claim they can’t access their funds and haven’t been paid dividends in months. The startup is embroiled in litigation, including a lawsuit from its early venture investor Viola.

One early user told TechCrunch that Landa stopped paying dividends to him on his shares in January. When he asked Landa about it, they “punted the question,” he said.

“I repeatedly emailed them about it and just got deflecting answers, nothing real,” the user said. “Then a few months after that, the app became unusable. It would not open.”

The user then asked if he could delete his account, which he had opened in 2021, and sell the shares. But he found Landa had disabled his ability to sell shares.

“They have essentially frozen me out of my funds and just shut down the app,” the user said. “Where is the money? Why won’t they return it to me?”

Over 130 complaints have been filed against Landa to the Better Business Bureau, with dozens of people echoing similar allegations. For instance, on May 1, one user who filed such a complaint shared they had invested over $8,000 through Landa and stopped receiving dividends last fall. The user said Landa customer service replied to their emails by saying that the company is “working on it.”

In mid-April, when TechCrunch asked Landa about the issue — including the status of its downed site and whether the company itself had shut down — CEO Cohen said: “Of course not. The site will be back up.”

When asked why the app was not working and why users had not received dividends in months, Cohen’s terse reply still seemed to refer to the website, blaming the servers: “It’s unrelated to dividends. It’s from our servers. We are on it.”

Upon further prodding, Cohen on April 18 shared the following statement: “We are aware of the issues currently affecting our platform and product, and want to assure all investors that we are actively working to restore full functionality as soon as possible. We have kept investors informed through all updates, including the server access issue. We appreciate the continued support of our investors and resident community, and remain committed to delivering on our vision of making real estate investing accessible to everyone.”

Cohen did not respond to our request for a status update on May 20. Investors NFX and 83North did not respond to our multiple requests for comment.

Embroiled in a lawsuit

It’s not just users who are upset with Landa. The company’s primary lenders are suing.

Viola Credit and L Finance filed a lawsuit in New York State Supreme Court against Landa in November 2024, accusing it of “numerous defaults” on more than $35 million worth of loans they extended to the company. (Viola is also an investor in Landa through its venture division.)

The lenders also accused it of missing property tax payments that led to the forced sale of those properties, neglecting properties, and even failing to collect rents.

The lawsuit — first reported by real estate industry publication Bisnow — states that after over a year of attempting to get Landa to honor their commitments, the lenders removed Landa as manager of the homes and appointed an independent property manager and a chief restructuring officer.

After further negotiations failed, the creditors later asked the court for, and were granted, an injunction blocking Landa from accessing bank accounts, interfering with their attempts to restructure the business, and reclaiming money they say is owed — including proceeds from property sales.

Despite the injunction, the lenders returned to court in January 2025, claiming Landa told tenants to send rent payments to a different bank account not covered by the ruling. They discovered this while making repairs to one property’s septic system. They also accused Landa’s CEO of trying to sell or refinance some properties.

The court ordered Landa to explain itself. Instead, in early March, Landa asked the court for a restraining order against Viola Credit and L Finance, claiming the independent manager was “installed unlawfully.”

Judge Jennifer G. Schecter was not pleased. In March, she ordered both sides to find a solution “that’s good for all of your clients.” She denied Landa’s request for an injunction and ordered the company to pay nearly $100,000. A few weeks later, Landa filed a formal countersuit. The case is still pending.

Challenging model

Landa is just one of several startups that emerged in recent years offering fractional real estate investing. It is also apparently not the only one that has struggled — especially after mortgage interest rates began soaring in 2022.

Fintor raised millions of dollars before seemingly pivoting to offer an “AI Agent to automate finance and real estate operations with human level performance.” Dallas-based Nada, which offered index-like real estate investment products called “Cityfunds,” allowing non-accredited investors to buy into a city’s home equity market with as little as $250, also appears to have pivoted. Its website now promotes a new tagline: “Access home equity to finance anything.”

Arrived was perhaps the highest-profile of the bunch — and the only one that seems to be actively operating under the same model. In May of 2022, TechCrunch reported that Arrived raised $25 million in a Series A funding round including Bezos Expeditions, to allow people to buy shares in single-family rentals with “as little as $100.” According to its website, the startup has to date paid out over $13 million in dividends and interest and has 766,000 registered investors.

As for those people who invested with Landa, the future of their money appears uncertain. As of May 23, Landa’s investor portal website still redirects to a “come-back-soon” maintenance message.

Technology

Pintarnya raises $16.7M to power jobs and financial services in Indonesia

Pintarnya, an Indonesian employment platform that goes beyond job matching by offering financial services along with full-time and side-gig opportunities, said it has raised a $16.7 million Series A round.

The funding was led by Square Peg with participation from existing investors Vertex Venture Southeast Asia & India and East Ventures.

Ghirish Pokardas, Nelly Nurmalasari, and Henry Hendrawan founded Pintarnya in 2022 to tackle two of the biggest challenges Indonesians face daily: earning enough and borrowing responsibly.

“Traditionally, mass workers in Indonesia find jobs offline through job fairs or word of mouth, with employers buried in paper applications and candidates rarely hearing back. For borrowing, their options are often limited to family/friend or predatory lenders with harsh collection practices,” Henry Hendrawan, co-founder of Pintarnya, told TechCrunch. “We digitize job matching with AI to make hiring faster and we provide workers with safer, healthier lending options — designed around what they can reasonably afford, rather than pushing them deeper into debt.”

Around 59% of Indonesia’s 150 million workforce is employed in the informal sector, highlighting the difficulties these workers encounter in accessing formal financial services because they lack verifiable income and official employment documentation.

Pintarnya tackles this challenge by partnering with asset-backed lenders to offer secured loans, using collateral such as gold, electronics, or vehicles, Hendrawan added.

Since its seed funding in 2022, the platform currently serves over 10 million job seeker users and 40,000 employers nationwide. Its revenue has increased almost fivefold year-over-year and expects to reach break-even by the end of the year, Hendrawn noted. Pintarnya primarily serves users aged 21 to 40, most of whom have a high school education or a diploma below university level. The startup aims to focus on this underserved segment, given the large population of blue-collar and informal workers in Indonesia.

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“Through the journey of building employment services, we discovered that our users needed more than just jobs — they needed access to financial services that traditional banks couldn’t provide,” said Hendrawan. “We digitize job matching with AI to make hiring faster and we provide workers with safer, healthier lending options — designed around what they can reasonably afford, rather than pushing them deeper into debt.”

Pintarnya Founders Press Kit — image credits: Pintarnya (Founders of Pintarnya Ghirish Pokardas, Nelly Nurmalasari, and Henry Hendrawan)

While Indonesia already has job platforms like JobStreet, Kalibrr, and Glints, these primarily cater to white-collar roles, which represent only a small portion of the workforce, according to Hendrawan. Pintarnya’s platform is designed specifically for blue-collar workers, offering tailored experiences such as quick-apply options for walk-in interviews, affordable e-learning on relevant skills, in-app opportunities for supplemental income, and seamless connections to financial services like loans.

The same trend is evident in Indonesia’s fintech sector, which similarly caters to white-collar or upper-middle-class consumers. Conventional credit scoring models for loans, which rely on steady monthly income and bank account activity, often leave blue-collar workers overlooked by existing fintech providers, Hendrawan explained.

When asked about which fintech services are most in demand, Hendrawan mentioned, “Given their employment status, lending is the most in-demand financial service for Pintarnya’s users today. We are planning to ‘graduate’ them to micro-savings and investments down the road through innovative products with our partners.”

The new funding will enable Pintarnya to strengthen its platform technology and broaden its financial service offerings through strategic partnerships. With most Indonesian workers employed in blue-collar and informal sectors, the co-founders see substantial growth opportunities in the local market. Leveraging their extensive experience in managing businesses across Southeast Asia, they are also open to exploring regional expansion when the timing is right.

“Our vision is for Pintarnya to be the everyday companion that empowers Indonesians to not only make ends meet today, but also plan, grow, and upgrade their lives tomorrow … In five years, we see Pintarnya as the go-to super app for Indonesia’s workers, not just for earning income, but as a trusted partner throughout their life journey,” Hendrawan said. “We want to be the first stop when someone is looking for work, a place that helps them upgrade their skills, and a reliable guide as they make financial decisions.”

Technology

OpenAI warns against SPVs and other ‘unauthorized’ investments

In a new blog post, OpenAI warns against “unauthorized opportunities to gain exposure to OpenAI through a variety of means,” including special purpose vehicles, known as SPVs.

“We urge you to be careful if you are contacted by a firm that purports to have access to OpenAI, including through the sale of an SPV interest with exposure to OpenAI equity,” the company writes. The blog post acknowledges that “not every offer of OpenAI equity […] is problematic” but says firms may be “attempting to circumvent our transfer restrictions.”

“If so, the sale will not be recognized and carry no economic value to you,” OpenAI says.

Investors have increasingly used SPVs (which pool money for one-off investments) as a way to buy into hot AI startups, prompting other VCs to criticize them as a vehicle for “tourist chumps.”

Business Insider reports that OpenAI isn’t the only major AI company looking to crack down on SPVs, with Anthropic reportedly telling Menlo Ventures it must use its own capital, not an SPV, to invest in an upcoming round.

Technology

Meta partners with Midjourney on AI image and video models

Meta is partnering with Midjourney to license the startup’s AI image and video generation technology, Meta Chief AI Officer Alexandr Wang announced Friday in a post on Threads. Wang says Meta’s research teams will collaborate with Midjourney to bring its technology into future AI models and products.

“To ensure Meta is able to deliver the best possible products for people it will require taking an all-of-the-above approach,” Wang said. “This means world-class talent, ambitious compute roadmap, and working with the best players across the industry.”

The Midjourney partnership could help Meta develop products that compete with industry-leading AI image and video models, such as OpenAI’s Sora, Black Forest Lab’s Flux, and Google’s Veo. Last year, Meta rolled out its own AI image generation tool, Imagine, into several of its products, including Facebook, Instagram, and Messenger. Meta also has an AI video generation tool, Movie Gen, that allows users to create videos from prompts.

The licensing agreement with Midjourney marks Meta’s latest deal to get ahead in the AI race. Earlier this year, CEO Mark Zuckerberg went on a hiring spree for AI talent, offering some researchers compensation packages worth upwards of $100 million. The social media giant also invested $14 billion in Scale AI, and acquired the AI voice startup Play AI.

Meta has held talks with several other leading AI labs about other acquisitions, and Zuckerberg even spoke with Elon Musk about joining his $97 billion takeover bid of OpenAI (Meta ultimately did not join the offer, and OpenAI denied Musk’s bid).

While the terms of Meta’s deal with Midjourney remain unknown, the startup’s CEO, David Holz, said in a post on X that his company remains independent with no investors; Midjourney is one of the few leading AI model developers that has never taken on outside funding. At one point, Meta talked with Midjourney about acquiring the startup, according to Upstarts Media.

Midjourney was founded in 2022 and quickly became a leader in the AI image generation space for its realistic, unique style. By 2023, the startup was reportedly on pace to generate $200 million in revenue. The startup sells subscriptions starting at $10 per month. It offers pricier tiers, which offer more AI image generations, that cost as much as $120 per month. In June, the startup released its first AI video model, V1.

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Meta’s partnership with Midjourney comes just two months after the startup was sued by Disney and Universal, alleging that it trained AI image models on copyrighted works. Several AI model developers — including Meta — face similar allegations from copyright holders, however, recent court cases pertaining to AI training data have sided with tech companies.

Got a sensitive tip or confidential documents? We’re reporting on the inner workings of the AI industry — from the companies shaping its future to the people impacted by their decisions. Reach out to Rebecca Bellan at [email protected] and Maxwell Zeff at [email protected]. For secure communication, you can contact us via Signal at @rebeccabellan.491 and @mzeff.88.

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