Less than a month after launching its equity crowdfunding campaign on Seedrs, property crowdfunding platform CapitalRise has closed the round with more than £2.2 million in funding. As previously reported, CapitalRise is on 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.”
The funding portal 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 and Co-founder Uma Rajah a Fintech “pioneer” who was an early employee at Wonga.
CapitalRise revealed that after 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.
Speaking about the funding round’s success, Rajah reportedly stated:
“We are overwhelmed by the influx of investor support generated through our Seedrs fundraise, both from our new shareholders who clearly believe in CapitalRise’s ability to disrupt the prime property lending and investing market, and from the significant number of new members who’ve signed up to become a part of our community.”
Funds from the Seedrs campaign will be used for the following:
- Technology: Building out CapitalRise’s engineering team and delivering our product roadmap
- Marketing: To increase the pace of investor and borrower acquisition
- Lending: To build out CapitalRise’s origination and loan monitoring teams to handle greater loan volumes
- Finance, Legal & Compliance: To manage increased transaction levels
- Investor Relations and Other: To maintain high customer service levels as customer numbers increase
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