Octopus Ventures leads $22.4 mln Series B for Property Partner

London-based Property Partner, a property crowdfunding platform, raised 15.9 million pounds ($22.4 million) in Series B funding, bringing the total amount invested in the company to 22.5 million pounds ($31.7 million). Octopus Ventures led the round with participation from Index Ventures and Dawn Capital.

PRESS RELEASE

London, 7 March 2016 — Property Partner – the property crowdfunding platform that allows anyone to invest in residential property at the click of a button – today announces the successful completion of a £15.9m ($22.4m) funding round, taking the total amount invested in the company to £22.5m ($31.7m).

Launched barely a year ago in January 2015, Property Partner already boasts more than 6200 customers – who have together invested more than £24m across 166 properties – and has been recognised by KPMG as one of the world’s top 50 emerging Fintech companies.

Property Partner’s mission to make property investment available to all has now received a substantial boost, after it became one of just a handful of European Fintech firms to successfully secure ‘Series B’ funding. The investment round is being led by Octopus Ventures, with participation from Index Ventures and Dawn Capital.

With one property launch per week, Property Partner is already one of the most active buyers in the UK residential market. Investors earn an estimated return of 13% per annum, after fees — free from all the hassles of conventional buy-to-let.

Through the power of the crowd Property Partner is making the property market better: not just for investors but also for tenants, first time buyers and housing supply.  Tenants receive a professional rental experience, aspiring first time buyers track the housing market with their deposit savings, and small developers get improved cash-flow to accelerate property transactions, increasing housing supply.

But what makes Property Partner completely unique is its flourishing resale market. This property ‘stock exchange’ allows investors to buy, trade and sell their shares on the platform. With £4.7 million shares already traded, Property Partner is bringing a hugely valuable measure of liquidity to the residential asset class.

Property Partner will use this investment to expand across the board. Plans are in place to grow the customer base by developing new segments, including institutional investors. Exciting new products, such as shared ownership, are in the pipeline. The funding will help Property Partner attract the best talent to join an expanded team, to bring its unique, revolutionary product to the widest possible market – here in the UK, and beyond.

Dan Gandesha, CEO, Property Partner, commented:

“This significant investment is a huge vote of confidence in our business model, and our vision for making the property market better for everyone. These funds will help propel us towards our ultimate goal – that of being a global stock exchange for property.”

Jo Oliver, Investment Director at Octopus Ventures added:

“The £5.75 trillion UK property market, with the exception of pioneers such as Zoopla, has been slow to embrace technology. However, this is now changing rapidly and Property Partner is one of the companies leading this disruption. 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. Octopus Ventures is delighted to be leading the current investment round to help Dan and his team fulfil their vision of being the world’s leading stock exchange for property.”

Neil Rimer, Founding Partner at Index Ventures, said:

“Owning property in London has so far only been an option for wealthier residents. Property Partner changes this by allowing anyone to invest in attractive residential properties, earning rental income and participating in capital gains if the property appreciates. Property Partner operates a revolutionary property marketplace that will continue to simplify and open up property ownership to a larger base of people.”

Josh Bell, Partner at Dawn Capital, added:

“Until recently, consumers wishing to make financial investments had the limited choice of either buying shares or keeping their money in the bank. The Fintech wave is bringing a wealth of new investment options to consumers, from peer-to-peer lending to equity crowdfunding, and now, finally, real estate.  At Property Partner, consumers can buy and sell ownership stakes of residential properties from just £50, in minutes, anywhere in the UK.  This is a great illustration of the transformative power of Fintech and of a company that is deploying it really well.  We look forward to backing the Property Partner team as they build this very exciting business.”

Phil Cox, Head of EMEA and President of Silicon Valley Bank’s UK Branch, commented:

“Property Partner is a true disruptor, making investment in residential property a reality for a much wider community than ever before. We’re delighted to assist with the business’s rapid growth in the UK, and look forward to working with the team as it continues to make huge inroads in the proptech sector.”

About Property Partner:

Property Partner (www.propertypartner.co) uniquely combines residential property crowdfunding with a secondary exchange upon which investors can trade their holdings.

The company allows anyone to invest in an individual property of their choice, with as little or as much they wish, so they can own a share, receive rental income and release capital gains if property prices rise. The letting and management of the properties is carried out on behalf of investors.

Property Partner brings accessibility, simplicity and transparency to a residential property market that has traditionally had high barriers to entry.

It operates a simple and transparent fee structure:

 

  • A one-off transaction fee of 2% charged on the purchase of your investment (not annually recurring and with no charge on disposal)
  • An industry standard rate of 10.5% (+VAT) of rental income, for the three services of advertising, letting and managing the property

In December 2015, Property Partner was named in the KPMG Fintech 100 as one of the world’s top 50  emerging Fintech companies. In January 2016, Bloomberg unveiled its inaugural Bloomberg Business Innovators list, naming Property Partner as one of the breakthrough businesses disrupting the way people live, work and think in the UK.

Property Partner is the trading name of London House Exchange Limited, a company that is authorised and regulated by the Financial Conduct Authority.

About Octopus Ventures:

At Octopus Ventures we look for unusually talented teams intent on building businesses that can scale explosively to create, transform or dominate an industry. In recent years we have been fortunate to back the founding teams of over 50 companies across Europe, including Zoopla Property Group, Secret Escapes, SwiftKey and graze.com.

We can invest from £250,000 to £25 million in a first round of funding and will look to follow in subsequent rounds. We are proud to be known as one of the most entrepreneur friendly investors in Europe and a significant part of our portfolio consists of referrals from existing teams we work with or serial entrepreneurs who we have previously backed.

Octopus Ventures is part of the Octopus group. Octopus is a fast-growing UK fund management business with leading positions in several specialist sectors including property finance, healthcare, energy and smaller company investing. Founded in 2000, Octopus manages more than £5.5 billion of funds on  behalf of 50,000 investors.

https://www.octopusventures.com/

About Index Ventures:

Index Ventures is an international venture capital firm that backs the best and most ambitious entrepreneurs in the US, Europe and Israel across all company stages, from seed to venture and growth. These leaders are building truly transformative companies that are reshaping the world around us, including Adyen, BlaBlaCar, Criteo, Dropbox, Deliveroo, Funding Circle, King, Squarespace, Sonos, SoundCloud and Supercell – among many others. Find out more about the Index family at www.indexventures.com and@indexventures.

About Dawn Capital:

Dawn Capital is an early stage VC firm run by entrepreneurs and investing in startups across Europe. It supports SaaS and Fintech companies that develop world leading technology to improve business value chains and productivity. Dawn Capital typically invests between £2 million – £5 million in companies that are expanding internationally and are looking for operational support and capital. Dawn Capital’s portfolio companies include Collibra, Gelato Group, iControl, Mimecast, Neo Technology, Showpad and iZettle, with many others looking to join their rank.

www.dawncapital.com