Equito App creators, who are carrying out a crowdfunding campaign via Crowdcube, have noted that traditional real estate investing is becoming increasingly inaccessible for the average investor.
Equito explained that it intends to change that by enabling anyone to invest in real estate properties starting from as low as €100 in only 2 minutes and then receive steady rental income each month.
Based in Spain, Equito has so far raised a substantial €555,660 via Crowdcube (at the time of writing). According to the update, 415 investors took part in the fundraising campaign which has reportedly achieved 185% of initial funding target of €300,000.
As noted in the update, this raise is said to be part of a wider round of which the company has already “received €260,000 through CLNs on the same terms as those offered to the crowd.”
As clarified in the update, these funds are reflected on the progress bar “as they remain unspent.”
The company further explained that instead of investing and immediately receiving shares, in this round payments will be “transferred directly to the company and shares issued at a future date.”
As stated in a blog post, convertible allows a company to “raise funds without having to agree a valuation.”
Some other key highlights are as follows: 8.9M€ invested on the platform with 2.9M€ in the last 3 months (over €8M last 12 months).
Other key details:
- 150,000 downloads with clients in more than 50 countries.
- Properties are financed within a few hours, with investments being made in just minutes.
- Projected average profitability of 9% on platform properties for customers
According to the update, real estate is one of the safest investments worldwide, but it’s becoming for challenging for individuals as it is reportedly quite “inaccessible due to the high capital needed.”
Equito further noted that it lets you invest in real estate opportunities from your phone with “just €100 in just 2 minutes.”
You are reportedly able to earn the rents monthly without the “hassle of managing properties.”
Global market potential for Equito has “1.64B users, with 109.1M in Europe and 20M in Spain.”
By 2030, the Spanish market is expected to “reach €23.6B.”
Their business model reportedly includes the following: a pre-investment commission, an annual management fee, a transaction fee on early exit or capital gains.
Equito allows anyone, from anywhere, to invest in residential real estate via mobile “in 2 minutes, with a minimum of €100 and monthly rent payouts.”
They plan to hire 11 new employees to accelerate growth while continuing to invest in R&D, with the goal of “becoming the market leader in Spain and expanding internationally.”
Their founders have reportedly contributed “€300,000 to launch the business, and we raised €365,000€ in a pre-seed round from Swiss, German, and Spanish business angels.” They’ve processed 23,000 transactions, with their “top 3 investors contributing €404K and the top 100 each investing over €12K.”
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