29 August 2019, UK – Peer to peer (P2P) lending platform The House Crowd is launching a £1m Seedrs fundraising round in order to target three new markets.
The House Crowd began life in 2012 as the world’s first equity-based property crowdfunding platform and has been one of the pioneers in this fast-growing industry. It started crowdfunding buy to let property in 2012 and has evolved into an FCA regulated peer to peer lending (P2P) platform funding multi-million-pound property developments. It has raised over £112m from its twenty-seven thousand plus members.
The fundraising round will see The House Crowd launch a new brand – Money Mog – designed to target the underserviced millennial market. Money Mog enables millennials to invest in a property backed ISA from as little as £50.
Funds would also be used to further develop The House Crowd’s product range including property backed Innovative Finance ISAs and SIPPs that earn up to 10% a year tax free. In doing so, the business will continue towards its aim of democratising property investment and delivering solutions with more worthwhile and consistent returns than traditional investment products.
The million-pound funding round values the business at £28.9m.
The FCA regulated platform has paid out £5.7m of returns and has lost £0 of capital on its loan book.
Frazer Fearnhead, CEO of The House Crowd comments:
“We exist to simplify secured property investment as an asset class and make it accessible to all those wanting to build a better financial future. This latest funding round will support the launch of our new Money Mog brand targeting the millennial market and our new SIPP and ISA products. Each of our new property-backed products offers an attractive way to gain higher returns without getting involved with stocks and shares.
“You could argue that our £28.9m valuation is conservative compared to our competitors given the funds we’ve raised in previous years. Although we could have feasibly attached a higher valuation, we wanted to leave room for investors in this round to share generously from the next few years of innovation and growth.
“The property crowdfunding and P2P lending space is thriving with global P2P lending set to grow tenfold in the next five years. We know that given our strong team, proven traction, high average customer value of £31,000, and forthcoming product launches, there’s a lot of obvious growth potential.”
Since launching, The House Crowd has funded 400+ properties and paid out on 38,930 investments equating to over £50m in capital and returns.
The peer to peer property lending platform is raising the cash on investment platform Seedrs from September 5th for pre-registered users and September 9th for the general public.