London FinTech start-up Property Partner closes £1.25m seed funding led by Octopus Investments
Betfair’s Ed Wray, Better Capital’s Jon Moulton, and Seedcamp participate in round to support launch of buy-to-let property investment platform
Financial technology (FinTech) start-up Property Partner, the trading name of London House Exchange Limited, has today announced a £1.25m seed round led by venture capital firm Octopus Investments, with additional backing from several high-profile investors and organisations.
Leading European accelerator Seedcamp, Betfair co-founder Ed Wray, Better Capital founder Jon Moulton, Crescendo Real Estate co-founder Daniel Quai, and BskyB CFO Andrew Griffith, also participated in the round to support the company’s growth plans.
Combining residential real estate crowdfunding with a secondary exchange to enable investors to trade their holdings, London-based Property Partner will allow users to invest in an individual property of their choice, for as little as £50, in return for a share of the property, rental income and access to capital growth.
Authorised and regulated by the Financial Conduct Authority (FCA), the site aims to “bring accessibility […] to a market that has traditionally had high barriers to entry”; with letting and management of the properties carried out on behalf of investors.
The deal takes the property start-up’s total investment to £1.4m following a previously unannounced £150,000 seed raise in February 2014 backed by Ed Wray, Daniel Quai, and Andrew Griffith.
Property Partner CEO and founder, Daniel Gandesha, former head of commercial development and start-up investments at BskyB, discussed the news:
“Buy-to-let has many hurdles which put people off, including the significant up-front cash requirements, exposure to unexpected costs, administrative burdens and legal obligations. Property funds don’t solve the problem either, as you lose control and visibility over which properties you’re actually investing in.
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“We’re passionate about addressing these issues, which I’ve experienced first-hand, so anyone can easily, affordably and enjoyably participate. We’re delighted that we have the backing and support of such an experienced group of investors”.
As part of the transaction, Octopus Ventures’ investment manager Jo Oliver will join the company’s board.
“Octopus looks to invest in people with the potential to build big businesses that can transform an industry. We’ve been extremely impressed by Gandesha as well as the progress that he and his team have made in a relatively short period of time. We’re also very excited by his unique take on property crowdfunding and long-term vision for the business.”