Proptech start-up BrickVest raises £7m

Backed by German real estate finance provider Berlin Hyp, who now have a minority stake in the start-up, the pair have also formed a strategic partnership

BrickVest, the online real estate investment platform, has raised £7m in its latest funding round with German real estate finance provider Berlin Hyp acting as the lead investor.

Providing capital to Germany’s largest banking group, the Savings Banks Finance Group, Berlin Hyp now hold a minority stake in the proptech.

Forming a strategic partnership as part of the deal, the arrangement will enable BrickVest to grow its investor base and expand its deal catalogue.

While Berlin Hyp now has access to an online, AIFM regulated real estate investment platform and an investor base of more than 3,500 and family office assets worth around €11bn.

As a result, Berlin Hyp will be able to advise its clients on a greater number of European real estate deals and to boost its offering across the equity, mezzanine and senior debt space.

Helping high-net-worth individuals and medium-sized investors build a portfolio of real estate investments, BrickVest was founded in London by Dr. Thomas Schneider, Emmanuel Lumineau and Adalbert Wysock.

Launched in February 2016 and appearing in our Just Started profile, co-founder Lumineau explained how hoped BrickVest would open up the property market to “new players” and remove the high entry point for first time property investors.

A former investment banker and early backer of Twitter, Lumineau stated that BrickVest’s five year plan was to be the leading market place for real estate investments globally.

Raising £2m via 44 angel investors just last March, BrickVest previously bagged $1m back in April 2015 before receiving “significant investment” the following July.

Berlin Hyp have also confirmed they may seek to extend their stake in BrickVest in the future.

Emmanuel Lumineau, CEO at BrickVest, said:

“We’re delighted to have closed this series A fundraise with one of the largest amounts raised in the proptech sector.

“Our unique partnership with Berlin Hyp is transformative for BrickVest and we have a tremendous opportunity to expand our investor base of institutional sponsors and family offices.

“Both sponsors and investors continue to back our approach to democratise access to institutional real estate investments, in a highly secured and low-cost environment.

“This additional funding will enable us to continue investing in our in-house technology and scaling our innovative platform in line with soaring levels of demand for accessible real estate investment.”

Thomas Schneider, CIO of BrickVest, said:

“We are excited to partner with a renowned German mortgage bank such as Berlin Hyp.

“Having conducted exploratory talks with several banks we felt that Berlin Hyp was the most digitally integrated firm and a perfect fit for BrickVest, which is actively promoting the transformation of the real estate financing sector.”

Sascha Klaus, chairman of the board of management of Berlin Hyp AG, said:

“For us as a bank, this partnership is a way to further implement our digitisation strategy, expand our value chain and tap into further growth potential.

“Our decision was preceded by a thorough review of BrickVest’s business model. The technology, products and the skills and experience of the management team convinced us to agree the partnership. “