Proptech CrowdProperty Loan Market Raises Seed $ 1.5 Million

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Market lending platform CrowdProperty Australia has raised $ 1.5 million in a fundraising round to increase funding for property development for SMEs.

The increase was led by developer Oscar Done, backed by several real estate, financial and tech investors including Alex Retzlaff, vice president of Black Nova and Jeff Lewis, former vice president of technology at TripAdvisor.

CrowdProperty was launched in Australia in May this year as a joint venture with CrowdProperty UK. It offers wholesale and institutional investors, including SMSFs and trusts, the opportunity to invest in real estate project loans and arranges investment agreements to reduce risk. The company has already appraised more than $ 120 million in real estate projects, funding three to date and an additional $ 17 million under review.

The startup aims to lend $ 200 million over the next two years.

CrowdProperty CEO and co-founder David Ingram said it was the “smoothest” capital increase he has managed.

“We have had the luxury of being quite selective about who we invite to join the cycle,” he said.

“We have had a lot of interest from family offices and wealth managers who have seen value in our direct creation of quality residential developments, and from experienced real estate developers who value the issues we help solve in their world. Then we had serial tech entrepreneurs who saw our potential to evolve the solution. “

Ingram said that having a profitable business model already in our UK joint venture partner has certainly helped reduce the company’s risk for investors.

“But they also see the opportunity in the Australian market. For example, 55% of Australia’s wealth is property related compared to 35% in the UK, ”he said.

“Access to alternative finance for builders and developers who want to build the kind of homes Australians want to live in has never been more important. Especially at a time when housing is becoming increasingly unaffordable for so many Australians. This is underscored by APRA’s announcement to increase the minimum interest rate cushion to 3%. “

CrowdProperty UK CEO Michael Bristow said the Australian joint venture is looking to transform the financing of property development for local SMEs.

“We have already achieved several important milestones in 2021: we are launching in Australia and both closing a funding round of $ 1.5 million [in Australia] and a round of funding of £ 1,800,000 [UK] and secure a £ 300million institutional finance line that complements the various existing sources of capital by providing funding certainty for property developers, ”he said.

“Our goal is to take action to further scale businesses to realize our potential faster in our mission to transform financing for real estate development. “

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