Property Partner bags £5.2m to enhance property crowdfunding offering
London fintech start-up to use Index Ventures backing to build “global stock exchange for residential property” with Betfair’s Ed Wray among board of directors
Property crowdfunding start-up Property Partner has raised £5.2m just two months after its official launch in a deal led by venture capital firm Index Ventures; the investors behind Funding Circle and TransferWise.
Launched in January this year, London fintech start-up Property Partner combines residential real estate crowdfunding with a secondary exchange to allow investors to trade their holdings. It enables users to invest in an individual property of their choice, based in London and the South East of England, for as little as £50, in return for a share of the property, monthly rental income and benefit from any capital growth.
Since going live, the site has seen rapid growth with more than 1,000 people having invested in homes through the platform reinforcing our findings that property tech is one of this year’s 14 best business opportunities.
It intends to use the investment to create a “global stock exchange” and extend its residential property listings across the UK and “beyond”.
Index’s backing takes Property Partner’s total funding to date to £6.8m following a £1.25m pre-launch seed round from Octopus in September 2014, and a previous £150,000 seed raise in February 2014 led by Ed Wray, Daniel Quai and Andrew Griffith.
As part of the deal Index co-founder Neil Rimer and Betfair co-founder Wray will join the property start-up’s board of directors.
Property Partner CEO, Daniel Gandesha, commented: “Index are a great investor to have on board, with really deep experience in both fintech and cross-border growth. I can’t imagine anyone better placed to help us deliver our long-term vision for Property Partner – as a global stock exchange for residential property.
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“We are convinced that this model for property investing is a highly attractive alternative to buying properties directly. We also believe strongly in providing tenants with a more professional service, because tenants who are treated well and fairly are more likely to stay longer.”
Index Ventures’s Rimer added: “A reinvention of residential property as an asset class is currently underway. It is being democratised and opened up to a far broader range of people, who can now invest without the hassle and liquidity problems that have traditionally plagued direct investment in property.
“In Property Partner, we believe we are backing an exceptional team with the skills to spearhead the growth of this exciting new sector and take property crowdfunding into the mainstream, across the globe.”