CapitalRise, a property crowdfunding platform, is raising growth capital on Seedrs. The just recently launched campaign has quickly topped its initial goal of raise £1.5 million for 8.57% equity in the company. Today, 307 individual investors have participated in the offer that has a pre-money valuation of £16 million as it moves into “overfunding” mode. CapitalRise did not reveal the top limit of the funding round.
CapitalRise has a mission of simplifying the process for borrowers to efficiently raise the capital they need while enabling investors to capital “market-leading returns of 8 – 12 % per year from secured lending to prime real estate.”
CapitalRise was founded by Alex Michelin and Andrew Dunn who founded Finchatton, an international luxury property development firm. According to the company, the pair have developed over £1.2 billion of real estate across 120 transactions with no losses. They have been joined by CEO & Co-founder Uma Rajah a Fintech “pioneer” who was an early employee at Wonga.
To date, CapitalRise reports having lent over £25 million against over £270 million of property assets in locations such as Mayfair, Knightsbridge, and the Home Counties. The company states that demand for finance remains “robust with a record c. £1.6 billion of loan inquiries generated in the past six months.” CapitalRise primarily targets funding of £5 million or less, which is considered an underserved area of the market.
CapitalRaise says it has already paid back £7 million to members, with its latest redemption – which closed on schedule, on Friday – delivering returns of 11% p.a. to investors in the Central London project 24 months ago.
CapitalRise adds that it has seen a more than a “twofold surge” in registered during the past 12 months. The company claims that every investment opportunity launched on their site has been oversubscribed.
“We’re humbled by the show of support already received from our community, and now look forward to introducing the business to an even wider audience of crowdfunding investors through the Seedrs platform,” said Rajah. “Whilst this raise will be used to expand the business, this year we are also looking to write increasingly bigger ticket loans, whilst ensuring we never compromise on the quality of assets we lend against, so that we can maintain our impressive track record.”
Rajah added that they are excited to be working with Seedrs as they are highly respected in the crowdfunding sector.
“As a fellow crowdfunding platform, we’re confident that Seedrs are a great partner for us and we look forward to a positive response from their member base.”
Launched in 2016, CapitalRise received £2 million in seed funding in April of 2018 which was led by banking entrepreneur Rana Kapoor who founded YES Bank, India’s fourth largest private sector bank.
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