If you have ever visited Seedrs, CrowdCube or Funding Circle you will be well aware of the capacity business’ now have to launch new ideas and access growth capital. Transforming the way people seek investment, aspiring entrepreneurs can rely on a ‘crowd’ of funders to provide financial backing to their projects in return for an equity stake. It is estimated that by 2020, crowdfunding will raise £15bn for British innovators, entrepreneurs, community groups, artists, sports people and others1.
With London now the financial technology capital of the world (as stated by City AM2) it’s now Cardiff’s turn to make use of such technology with online property investment platform, ShareProperty. Adapting the crowdfunding model to the property market, ShareProperty provides access to a range of property investments, with a minimum investment threshold of £100. This process of “democratisation” opens up the property asset class to a wider investor base; part of a wider structural overhaul through the effective implementation of technology.
As part of the business launch, ShareProperty is raising capital on the Seedrs platform. To date, Seedrs has raised in excess of £2m for Welsh businesses, including Veeqo1. Having built out the technology, the company is looking to raise up to £80,000 to launch the platform to the market and grow.
What does ShareProperty do?
With a mission to ‘Simplify Property Investment’, the ShareProperty investment team analyse the market for suitable investments. They adopt a rigorous due diligence approach meaning that over 90% of the property deals presented to them do not meet the platform criteria.
ShareProperty members can put in as little as £100 in exchange for shares within a company set up to exclusively own and manage the single property asset. Any returns are then paid directly to members through the platform. Typically, returns can come by way of regular dividends and capital growth either on disposal or refinancing of the asset.
Seeing each investor enjoy any passive monthly dividends from the property in an exciting new investment opportunity for fractional real estate ownership, the Company is keen to promote to the people of Wales and the South West of England initially.
Recognising the changing landscape
With the steep changes to the buy-to-let model in the UK, landlords, smaller property developers and investors can all benefit from ShareProperty.
Co-founder David Rees explains why he believes that now is the perfect time for ShareProperty to launch;
“We enter a new era of investment where technology creates process efficiency and opens up the market for property investment to a wider user group. This peer-to-peer “democratisation” effect, allowing for “direct investment”, can to some extent become a societal leveller and something for which I have a passionate belief”
George Grigg, CEO, tech-entrepreneur and fellow co-founder also comments:
‘People are unaware of just how many alternative investment opportunities are now out there. The technology is available and businesses are starting to really accelerate their application to relevant market sectors. The potential is a sophisticated, end-to-end investment, research, and management system for the property investment market in every living room in the country”
‘We also wish to streamline the practice of raising funds for SME developers. We need to refurbish properties in this country and at the moment the lending environment is not allowing the SME private sector to contribute to the structural supply/demand problem.’
Invest in ShareProperty
If you are interested in learning more about becoming part of this revolutionary business, then be sure to head to their Seedrs campaign today. There you will find a full business valuation, business plans, employee information and much more.
Please note that investing in early stage businesses involves risks, including loss of capital, illiquidity (the inability to sell assets quickly or without substantial loss in value) and lack of dividends and should only be done as part of a diversified portfolio. Your capital is at risk if you invest.
Shareproperty Limited (FRN: 740242) is an Appointed Representative of Kession Capital Limited (FRN: 582160) which is authorised and regulated by the Financial Conduct Authority in the UK.