Launched at the beginning of this month, EstateGuru set a minimum hurdle of €350,000 but quickly surpassed that goal. EstateGuru is seeking a maximum of €2 million on Seedrs as part of a larger Series A goal of €5 million, according to the company.
Investors on the Seedrs listed offering are receiving equity at a pre-money valuation of €28.8 million. EstateGuru, based in Estonia, has originated over €200 million in property-backed loans for SMEs. The company claims over 46,000 investors from around the world. EstateGuru also reports zero loss for investors so far.
“In these circumstances, people start to value alternative options compared to the mainstream models. Alternative financing is growing rapidly and adding liquidity to the economy during complicated times. The sector will be stronger after the crisis and the share of alternative financing will increase,” said Pärtel. “Money is still there, and people are more eager to look for alternative business models and alternative ideas which could have a positive impact on our future on this planet. Half of the investors are our own users and half are Seedrs users. We are definitely on the right track if we have such loyalty from our own customer base.”
The additional capital is expected to be used for three strategic objectives: geographical expansion, delivering an ambitious technology roadmap, and developing the area of capital markets and institutional investments.
EstateGuru has consistently stated its mission is to become the largest real estate financing platform in Europe by 2025.
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