Peer-to-Peer lending platform Landbay, which wants to facilitate secured commercial property loans, is using equity crowdfunding platform Seedrs to raise capital and they are offering 7.5% of the company for £50,000. Pre-money valuation places that company at £616,667.
Landbay is prepping to launch the platform which will initially focus on the Buy-to-Let sector of the real estate market. Borrowers are expected to be any current or prospective landlords in England or Wales. The Lenders will be any United Kingdom resident who has £100 or more to lend.
Co-founders of the new company are John Goodall, CEO, and Gray Stern, COO. Goodall started his career with a major recruitment consultancy and subsequently co-founded and managed an international financial services executive search business. After selling his stake in that business, John taught economics in the UK. After completing his MBA (Distinction) he returned to the City to work within one of Europe’s largest equity brokerages.
Gray has more than 15 years experience in property finance and investment, having commenced his career as a corporate property analyst at a major bank in Auckland. Gray then moved into structured finance where he built, managed and sold down a significant high-yield mezzanine debt portfolio before establishing his own consultancy.
With UK savers having endured historically low returns the opportunity for P2P lending platforms is ripe for opportunity. Landbay currently post expected annual returns of 3% to 10%. The P2P crowdfunding industry is booming both in the United Kingdom and around the world. The United Kingdom has led the industry launching some of the first P2P lending platforms. The industry has generated over £600 according to a report this past fall.
The Landbay offering currently stands at over 50% funded. The equity offering is SEIS eligible for UK investors. Landbay is targeting a January 2014 launch of their P2P platform.
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