Adelaide-based fintech Joust, which connects borrowers directly with over 20 lenders who compete against each other in real-time, has launched an equity crowdfunding campaign to raise $2 million. Joust aims to disrupt the $1.7 trillion home loan mortgage market by bringing competitive tension and transparency to the industry, which traditionally involves paying $2 billion in fees to mortgage brokers annually.
The fintech, which has been hailed as a “consumer hero,” uses technology to empower consumers and deliver superior customer outcomes. Over 2100 customers have already used Joust’s service, jousting home loans worth more than $1 billion. The equity crowdfunding campaign, which offers shares in Joust, aims to set the company on a growth trajectory that includes new products and geographic expansion. The funds raised will be crucial to achieving this. With a pre-money valuation of $4.7 million, Joust’s equity crowdfunding campaign offers a discount compared to comparable fintechs. The move is timely, given the disruption to the mortgage broker channel following the Hayne royal commission financial services inquiry.
Joust, a company providing a marketplace for home loan customers and lenders, has set out to disrupt the $1.7 trillion home loan mortgage market by eliminating the need for mortgage brokers. According to Mark Bevan, the co-founder and CEO of Joust, banks currently pay over $2 billion a year in commissions to mortgage brokers for delivering home loan borrowers. Joust’s model, which is cheaper, simpler, and more transparent, is expected to save banks money and provide a better experience for home loan consumers.
To achieve its goals, Joust is raising funds via equity crowdfunding on the OnMarket platform. Half of the funds raised will be used for marketing, with the remaining funds going toward new product development and potential expansion into overseas markets. While Joust currently operates only in the home loan space, the company is exploring the possibility of offering new products, such as insurance, car loans, and personal loans, through its platform.
Joust’s equity crowdfunding offer is live on the OnMarket platform until August 3, with a target minimum raise size of $700,000 and a maximum of $2 million. The minimum bid size for the offer is $500. As a fintech disruptor, Joust has embraced the new equity crowdfunding laws, which allow unlisted public companies to raise up to $5 million per year from the crowd. OnMarket, which has become the leading equity crowdfunding platform in Australia, has successfully completed several equity crowdfunding deals since receiving an equity crowdfunding intermediary license from ASIC. Ben Bucknell, CEO of OnMarket, expressed delight that Joust has embraced the new legislation and meets the criteria for early stage, innovative, and disruptive companies that investors on the platform are seeking.
