London-based property crowdfunding site Property Partner, among the UK’s top 100 start-ups, has secured £15.9 million in a Series B round of funding.
According to Startups.co.uk, platform founder Daniel Gandesha has ambitions to create a global stock market for residential property.
Led by Octopus Ventures with involvement from Index Ventures, the Property Partner's second round of funding also attracted investment from Dawn Capital, and Silicon Valley Bank.
In a model which imitates the stock market, Property Partner enables investors to buy a share in properties and receive dividends. Having launched the business in January 2015 Gandesha claims investors earn an estimated return of 13 per cent per year, after fees.
The start-up has so far attracted over 6,000 customers which have together invested more than £24m in 166 properties.
Startup.co.uk says Property Partner intends to use the investment, which takes its total funding to date to £22.5 million, to “make property investment accessible to all” in part by adding new products such as shared ownership and by developing its customer base into new segments.
“This significant investment is a huge vote of confidence in our business model, and our vision for making the property market better for everyone,” Gandesha tells Startup.
“These funds will help propel us towards our ultimate goal – that of being a global stock exchange for property.”
According to Octopus Ventures investment director Jo Oliver Property Partner is “leading disruption” of the property market.
Startup.co.uk quotes him as saying the £5.75 trillion UK property market, with the exception of pioneers such as Zoopla, has been slow to embrace technology.
“Through its combination of technology, business model and excellent management execution Property Partner is dramatically increasing and improving the accessibility of property as an investment asset class,” Oliver says.
“Octopus Ventures is delighted to be leading the current investment round to help Gandesha and his team fulfill their vision of being the world’s leading stock exchange for property.”