CrowdLords, a two-sided equity based residential crowdfunding platform from the UK, has launched its second round of funding on Seedrs. They are aiming to raise £200,000 to extend the platform, expand their investor base and develop new products.
Opening up the doors to new funders, CrowdLords – which connects landlords and developers with investors – is now live following a successful first round in October 2014, where it went into overfunding. This second round – set to end in July – will support the business growth as it looks to attract greater interest from both landlords/developers and investors.
Richard Bush, co-founder of CrowdLords along with Bethan Jenkins, stated:
“As a crowdfunding platform, we really believe in this method of funding and have chosen this route to launch the business itself. The first round on Seedrs was a success – we exceeded our funding target of £90,000 – and it’s great to know that your project is being backed by the crowd. What we offer is unique, a route to open up the property market and connect the right landlords or developers with the right investors, and we hope that investors in our own business will recognise the potential ahead as people seek different ways to get involved in the property market.”
LandLords and Developers can list a property or project on the CrowdLords platform and raise the funds they need from the crowd of investors. There is no need for a Buy-to-let mortgage, bridging finance or mezzanine debt and the financial terms and structure are defined by the LandLord or Developer with CrowdLords.
Investors can choose from a range of properties listed on the platform to invest in. The investors receive an equity stake in the property for their investment. They can invest from £1,000 per property and receive a share of the income on a quarterly basis and a share of the capital growth at the end of the agreed term. Investors can choose from a range of property types, in different locations, each offering different financial terms to help them diversify and spread their risk.
As a two-sided model, CrowdLords are in a position to scale fast and adapt easily to market changes and new opportunities as they arise. They do not source the properties or manage the properties so are not restricted by how many properties they can manage and as a result will be able to offer investors a more diverse range of investment opportunities.
CrowdLords carry out due diligence on every investor and landlord/develop prior to their property listing appearing on the platform. Investors – who can put forward as little as £1,000 – can then browse and invest in exchange for shares in a Special Purpose Vehicle (SPV) which buys the property. The landlord manages the property on behalf of the SPV and investors will receive a proportionate share of the income and/or capital growth.
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