Digital agent Nested has raised £120m in funds, in a round comprising of £20m in equity finance from European VCs Northzone and Balderton Capital, and £100m of debt finance from an unnamed institutional investor.
Currently Nested only works in the London market, and this latest investment will be used to scale up the firm’s services in and beyond the capital. The investment will also be used to launch “a number of customer tools and services”, though what exactly these include has not been revealed.
Nested conducts the work of a traditional estate agent, but offers home sellers up to 94% of their home’s value upfront and the rest when it sells, helping them to buy property in cash. If the home sells above the predicted value the seller will receive that too, minus their fees, and if it sells for less, Nested will take the loss.
Nested makes its valuation using data on similar properties from sources including Energy Performance Certificate Registers, Land Registry data, and specialist reports and surveys.
The firm was founded by Matt Robinson, who also co-founded online payments firm GoCardless.
Matt said: “We’re excited to receive the backing from some of Europe’s top VCs who share our vision for fixing the age-old problem of buying and selling homes. We are building an incredible team to offer an unassailable service with the most progressive technology in the property industry. This investment will allow us to continue solving the problems that prevent people from moving home with ease.”
Jeppe Zink, partner at Northzone, said: “Selling a home is the biggest and most important transaction most people undertake. Yet the sales process remains opaque, with the resulting never-ending property chains becoming the bane of the industry. I was immediately convinced by Matt’s vision for Nested to fix this, giving homesellers an accurate view, backed by an advance of the price they can achieve for their property. This means they can have peace of mind and the freedom to focus on securing their new dream home.
“I truly believe that Nested can be a fundamental game-changer and we are incredibly excited to be part of the journey.”