Property crowdfunding platform, Property Partner, has raised £15.9 million in a series B funding round. The investment was led by Octopus Ventures with participation by Index Ventures and Dawn Capital (£12.9 million). Silicon Valley Bank provided a £3 million venture debt facility as part of the funding round. Total funding in Property Partner now totals £22.5 million. The company said the new funding will fuel its mission to create a global stock market for residential property.
“These funds will help propel us towards our ultimate goal – that of being a global stock exchange for property.”
Launched in January 2015, Property Partner claims 6200 customers. The platform has facilitated £24 million in 166 different properties and says it is launching at least one property investment opportunity each week. Property Partner states it has become one of the most active purchasers in residential real estate market in the UK today.
“The £5.75 trillion UK property market, with the exception of pioneers such as Zoopla, has been slow to embrace technology,” said Jo Oliver, from Octopus Ventures. “However, this is now changing rapidly and Property Partner is one of the companies leading this disruption. Through its combination of technology, business model and excellent management execution Property Partner is dramatically increasing and improving the accessibility of property as an investment asset class. Octopus Ventures is delighted to be leading the current investment round to help Dan and his team fulfil their vision of being the world’s leading stock exchange for property.”
Property Partner has taken a unique approach to real estate crowdfunding. The platform allows individuals to invest in a property of their choice, with as little or as much they wish. The investor benefits from rental income, along with capital gains, if prices rise. Management of the buy-to-let properties are handled by experienced professionals. Investors may earn an estimated return of 13% per year, after fees – minus the hassles, according to Property Partner.
Property Partner believes it is improving the experience for tenants as well. Tenants receive a professional rental experience, aspiring first-time buyers track the housing market with their deposit savings, and small developers get improved cash-flow to accelerate property transactions, increasing housing supply.
Probably the most interesting aspect of the Property Partner investment crowdfunding platform, is the exchange that allows investors to trade shares of real estate assets directly on the site. Over £4.7 million in share volume has already taken place in about a year.
Phil Cox, Head of EMEA and President of Silicon Valley Bank’s UK Branch, called Property Partner a “true disruptor”.
“[We] look forward to working with the team as it continues to make huge inroads in the proptech sector.”
Property Partner will use the new capital to grow the customer base and add institutional investors. New products, such as shared ownership, are said to be in the pipeline now. Property Partner also expects to boost company staff.
“Owning property in London has so far only been an option for wealthier residents. Property Partner changes this by allowing anyone to invest in attractive residential properties, earning rental income and participating in capital gains if the property appreciates,” states Neil Rimer, Founding Partner at Index Ventures. “Property Partner operates a revolutionary property marketplace that will continue to simplify and open up property ownership to a larger base of people.”