Investorist, a property marketplace based in Melbourne, has successfully raised $2.5 million in funding at a valuation of $20 million. The funds will be utilized to accelerate the company’s growth in Australia, Asia, the United Kingdom, and to facilitate its expansion into the United States.
As a business-to-business platform, Investorist serves as a bridge connecting property developers with agents for off-the-plan property investments. Additionally, the platform manages the relationship between these parties, facilitating seamless information exchange, contract negotiation, and property settlement.
Several prominent investors participated in the Series A funding round, including Stuart Marburg, co-founder of Netspace, Paul Clarke, CEO of Redflex, and Benni Aroni, founder of Watersun Properties. Furthermore, there were undisclosed private investors involved. Salta Group, which led the startup’s initial seed round in 2014, also took part in this funding round.
Jon Ellis, the founder of Investorist, highlights the significant market potential for the platform. He reveals that there are approximately 150,000 off-the-plan property transactions per year in Australia, around 120,000 in the United Kingdom, and a staggering 700,000 in the United States.
After its launch in 2013, the startup dedicated its first year to exploring different revenue models. Eventually, it settled on three revenue streams. Firstly, Investorist charges developers for listing their projects on the platform. Secondly, property agents interested in these listings pay a subscription fee to access them. Lastly, the company licenses its software to other firms, enabling them to create their own portals.
Ellis shares the promising financial progress of the startup, stating that last month’s revenue was four times higher than the previous year’s, with a consistent quarterly growth rate of 30%. He further anticipates achieving positive cash flow within the next 12 months, marking a significant milestone for the company.
According to Ellis, Investorist currently hosts approximately 75% of all off-the-plan property listings in Australia. He emphasizes the cross-border nature of these transactions, often conducted by third parties on behalf of individual investors, making the platform ideally suited for this market. He notes that such sales commonly occur prior to advertisements appearing in newspapers or consumer portals. Investorist stands out as the only marketplace of its kind that utilizes sophisticated technology to transform an industry traditionally reliant on paper-based and phone-driven processes.
