The recent funding round for CrowdProperty, led by developer Oscar Done, has successfully raised a significant amount of capital. Supported by various investors, including Black Nova VP Alex Retzlaff and former TripAdvisor technology VP Jeff Lewis, the company is poised for growth in the property, financial services, and tech sectors.
CrowdProperty, which launched in Australia earlier this year as a collaboration with its UK counterpart, offers investment opportunities in property project loans to wholesale and institutional investors, including SMSFs and trusts. In an effort to minimize risk, the company meticulously curates investment deals. To date, they have evaluated over $120 million worth of property projects, having already funded three projects and with an additional $17 million currently under review.
Looking ahead, the startup has set an ambitious target of lending $200 million within the next two years. CrowdProperty CEO and co-founder David Ingram expressed satisfaction with the capital raise, describing it as the smoothest he has managed. He emphasized the selective approach taken when inviting investors to join the round, highlighting the interest from family offices, wealth managers, property developers, and tech entrepreneurs who recognized the value and potential of CrowdProperty’s direct origination of quality residential developments.
Ingram also noted that the success of their UK joint venture partner contributed to de-risking the business for investors. He further highlighted the opportunity in the Australian market, where a significant 55% of wealth is tied up in property compared to 35% in the UK. As the housing market becomes increasingly unaffordable for many Australians, access to alternative finance options for builders and developers is crucial. Ingram referenced the recent announcement by APRA to increase the minimum interest rate buffer to 3%, underscoring the need for solutions like CrowdProperty.
CrowdProperty UK CEO Michael Bristow shared his enthusiasm for the Australian joint venture, which aims to revolutionize local SME property development finance. Bristow highlighted several milestones achieved in 2021, including the Australian launch, successful seed and equity funding rounds, and securing a substantial institutional funding line of £300 million. These accomplishments, alongside existing diverse sources of capital, provide the company with a solid foundation and certainty of funding for property developers. Bristow expressed the company’s commitment to taking further action to accelerate its growth and achieve its mission of transforming property development finance.
