CrowdProperty has closed a £1.8m equity funding round to further step change the profitable FinTech/PropTech innovator, shortly after announcing the closing of a £300m institutional funding line agreement with a new major investment manager.
The equity fundraise, in partnership with Seedrs for the third time, was 227% funded against an initial £800k target. The campaign was backed by 793 investors and proved particularly popular amongst both lending and borrowing CrowdProperty customers, demonstrating how well CrowdProperty is solving pains felt by both lenders and borrowers alike.
CrowdProperty has now raised a total of £3.9m in equity capital having raised £900k in November 2017 and £1.1m in March 2019, rapidly growing the business following each round. The UK's leading specialist property project lending platform has now funded the development of 1,535 homes (up from 162 in November 2017) worth £309,000,000 (£28m), originating £187,000,000 of agreed facilities (£12m) and lending £146,000,000 to date (£10m). This has supported over £120,000,000 of spend on labour, materials and services in the UK economy.
Mike Bristow, Chief Executive of CrowdProperty, commented: “Having step-changed all business metrics since our last fundraise in March 2019 and proven the profitability of the business model whilst still investing in growth, we’ve yet again proven that we can scale rapidly and add considerable value with equity capital investment. This round is to further step change the business and to realise our potential quicker in our mission to transform property finance - to unlock the power of SME property developers in the UK to build more homes, increase spend in the UK economy and ever more efficiently and effectively match the supply and demand of capital for the benefit of all. Despite having supported over £300,000,000 of property projects to date, we are still relatively early on in fulfilling our potential.
“This equity funding round, the recently announced £300m institutional funding line and our unique and highly valued ‘Property Finance by Property People’ proposition will further grow the volume of high-quality property projects originated and funded by CrowdProperty. We have built a very strong pipeline that currently stands at £322m of progressed quality lending opportunities, putting us firmly on track to provide £400m+ of lending p.a. by 2024, underpinned by a highly scalable, in-house built, proprietary technology platform, scalable capital sources and deep expertise in exactly the asset class being lent against.”