The specialist property peer-to-peer lender has raised £1.1m to push ahead with its expansion plans and fund “hundreds of millions of pounds of property projects a year”.
CrowdProperty quickly surpassed its original £600,000 investment target on Seedrs, over-funding by 81% and raising £1,089,000 from 575 investors. The business is valued at £15m.
Last month, CrowdProperty raised £100m of loan capital from an unnamed “major institution” to expand the number of property projects it backs over the next 12-24 months.
Headquartered in Birmingham, the company, headed by Mike Bristow, has developed an online platform that facilities loans between private individuals and property businesses. Development proposals are vetted by a team of in-house property professionals, approved and released for finance to the public.
“CrowdProperty proved the concept as well as the efficiency and effectiveness of proprietary tech, systems and processes prior to our fundraise in November 2017,” said CEO Mike Bristow. “Subsequently we proved the ability to rapidly scale the business across every metric with investment whilst maintaining our 100% capital and interest payback track record, having now funded the development of 559 Great British homes worth almost £100m.
“Most notably and uniquely, we have built up an exceptional rate of directly originated quality property projects.”
According to Bristow, the raise will allow his business to “supercharge growth” and “deliver even better deals for both lenders and borrowers”, enabling it to “fund a material proportion of the homes the UK needs to be building”.
Bristow attributes the success of CrowdProperty to understanding the needs of on both sides of the marketplace and delivering expertise-led solutions. “SME property developers have been poorly served by traditional lenders yet are increasingly important in tackling housing under-supply and developing the 300,000 homes needed every year to meet the nation’s demand,” he continued.
“CrowdProperty is exceptionally well placed to serve this market better, given a fundamental understanding of property professionals’ needs and pains, offering a deep expertise-led service proposition and providing property professionals completing quality property projects with speed, ease and certainty of funding.
“This expertise then translates to expertly-curated, high quality, first-charge secured lending opportunities for all. We are creating the new era of property project finance.”
He added that the oversubscribed raise will enable the business to fast track its 2019 roadmap, which he claims is packed full of “innovative, value-adding and experience-enhancing developments”.