EstateGuru, a Lithuania-based debt crowdfunding platform, is returning to Seedrs to raise up to €1 million in equity capital. The offering went live in private mode on May 5th and quickly topped €500,000 in funding.
EstateGuru previously raised just under one million euros in June of 2020. At that time, EstateGuru was offering equity at a pre-money valuation of €28.8 million. Today, the securities offering is for a 1.4% stake in the firm at a pre-money valuation of €49 million – a significant jump in valuation since last year.
Since platform launch in 2014, EstateGuru has expanded operations to 8 different countries, facilitating more than €340 million worth of loans returning €25 million in interest payments. Loans originated on the crowdfunding platform all secured by property. EstateGuru states that its ultimate goal is to develop a digital, borderless ecosystem for real estate financing and investing.
Last month, EstateGuru reported that in March 2021, their investors were able to finance €21.5 million worth of loans a new record on their platform. At that time, EstateGuru said the German market was notably the largest contributor with €8.3 million, followed by Estonia with €5.2 million.
According to EstateGuru’s statistics page, the average loan stands at €152,200 and generates an average return of 11.43%. Loans are split between development, bridge, and business loans, and each loan is backed by collateral with 96.93% being the first lien.
Part of EstateGuru’s strategy entails securing more institutional capital which stood at 10% of loan volume in 2020 vs a target of 30% in 2021.
In a release, Marek Pärtel, co-founder and CEO of EstateGuru said the initial response to the new securities offering has been overwhelmingly positive, with investors racing to join.
“This reflects well on both our track record and the market in general. We’ve witnessed major growth not only in business volumes but also in the quality of our processes and international team since our last round on Seedrs. This year, our focus is very much on institutional investors, technology, and maintaining our historical growth pace. We aim to launch several institutional loan products, including a Luxembourg-based debt fund, to support our platform activities, and move from our current, data-based decision making to 90% automated underwriting by 2025. We also plan to complete the development of our API powered investment app and start integrating it with other market participants. Geographical expansion is imminent, as this year we will open at least two new markets. And, as we truly believe in the importance and power of our community, we are very happy to give them a chance to participate in our current equity raise and welcome them to be part of this fantastic journey with us. That is the reasoning behind our next Seedrs funding round.”
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!