Property crowdfunding platform CapitalRise to raise £1.5M via Seedrs

crowdfunding platform for the real estate industry, CapitalRise, is in the midst of raising growth capital through crowdfunding platform Seedrs. This newly launched campaign has already surpassed its initial goal of £1.5 million for 8.57% equity in the company.

Currently, 307 individual investors have participated in the offer that has a pre-money valuation of £16 million as it moves into “overfunding” mode. CapitalRise did not reveal the top limit of the funding round.

CapitalRise has a mission of simplifying the process for borrowers to efficiently raise the capital they need while enabling investors to capital “market-leading returns of 8 – 12 % per year from secured lending to prime real estate.”

CapitalRise was founded by Alex Michelin and Andrew Dunn who founded Finchatton, an international luxury property development firm. According to the company, the pair have developed over £1.2 billion of real estate across 120 transactions with no losses. They have been joined by CEO & Co-founder Uma Rajah a Fintech “pioneer”  who was an early employee at Wonga.

To date, CapitalRise reports having lent over £25 million against over £270 million of property assets in locations such as Mayfair, Knightsbridge, and the Home Counties. The company states that demand for finance remains “robust with a record c. £1.6 billion of loan inquiries generated in the past six months.” CapitalRise primarily targets funding of £5 million or less, which is considered an underserved area of the market.

CapitalRaise says it has already paid back £7 million to members, with its latest redemption delivering returns of 11% p.a. to investors in the Central London project 24 months ago.

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