By Roger Baird on Wednesday 17 April 2019
The Birmingham-based peer-to-peer lender said the cash call comes a month after securing a £100m funding line for new projects.
Specialist peer-to-peer lender CrowdProperty has closed a £1.1m equity funding round allowing it to “fast track” its growth this year.
The Birmingham-based platform, which lends to small property developers, said it has raised £1,089,000 from 575 investors based on a pre-money valuation of £15.7m. The campaign was hosted on crowdfunding site Seedrs.
It added that this total “smashed” its original £600,000 target.
CrowdProperty chief executive Mike Bristow said: “We are also excited that the oversubscribed raise will enable us to fast track our 2019 roadmap.”
Last month, the firm, founded in 2014, said it had secured a new £100m funding line from an unnamed institutional investor, giving it the capacity to fund larger projects for up to two years.
The start up said it has so far lent £34.6m to developers since launch promising investors returns of up to eight per cent. It has helped to build 559 UK homes over the last five years.
Bristow said: “We proved the ability to rapidly scale the business across every metric with investment while maintaining our 100 per cent capital and interest payback track record.”
He added: “Small and medium sized entrepreneur property developers have been poorly served by traditional lenders yet are increasingly important in tackling housing under-supply and developing around 300,000 homes needed every year to meet the nation’s demand.”