CrowdProperty closes funding round to ‘fast track’ 2019 growth

By Roger Baird on 17th April 2019

Property

The Birmingham-based peer-to-peer lender said the cash call comes a month after securing a £100m funding line for new projects.

CrowdProperty closes funding round to ‘fast track’ 2019 growth

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.”

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