The specialist buy-to-let mortgage lender says its total amount raised for the round, including an initial £1.25m of funding from existing and new investors, has now reached £1.615m. More than 270 investors participated in the raise, after Landbay opened itself up to crowdfunding investment on Seedrs at the end of last month.
The platform recently surpassed £100m of mortgages funded to date with zero arrears, a quarter of which was completed in the last three months. This latest round began as Landbay’s pre-money valuation sat at £28.9m, demonstrating the lender’s growth from its 2013 pre-money valuation of £616k when it first debuted on Seedrs.
“The first four years of the business have been spent building a strong foundation and the investment we have received through the platform has played a big part in this. Investment from this round will be used to continue to grow the business as we expect to become profitable by the end of 2018.”
Seedrs’ own Secondary Market launched in June last year, allowing investors to buy and sell shares in businesses that have previously funded on the platform. Landbay has been the third most popular business in share transactions, with 54 share lots traded to date.
Seedrs CEO Jeff Kelisky commented: “Landbay is a great example of the positive results possible with equity crowdfunding done properly, how instrumental it can be in the future of early stage businesses, and the positive returns it can generate for investors. It has been fantastic to support their journey and contribute to Landbay's ongoing success.”