Clearwell Capital, a UK-based company that provides funding to small and medium-sized property developers and housebuilders, is now seeking £375,000 through its equity crowdfunding campaign on Seedrs. Founded in 2010, Clearwell Capital states it is funded by banks, high net worth individuals and P2P lending platforms, such as Crowdstacker and ThinCats.
“We believe there is a significant funding gap faced by SME developers due to the reduced activity from high street banks in funding this sector. We have brought together many years of property lending and financial services expertise and believe our model provides the level of detailed review necessary to support the right developers on the best construction projects.”
Clearwell also revealed that it provides mezzanine finance alongside these banks with the aim of allowing more housing schemes to be built by SME builders.
“To find the safest lending opportunities we review a huge number of potential projects but fund very few. We do this by applying innovative screening techniques initially to weed out the weaker cases, before applying a more traditional approach to final selection using tried and trusted methods.”
Funds from the Seedrs round will be used to continue scaling the business in the same fashion over the next 12 months. The company is looking into doing the following:
- Enter into at least one new institutional lending facilities for at least £10m with the help of a US investment Bank.
- Double the team from 4 to 8 people, hiring a combination of seasoned development finance operators, as well a young talent.
Since its launch, the campaign has raised more than £235,000. It is set to close in the fall.
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