EstateGuru Announces a Funding Campaign of up to €1M on Seedrs
EstateGuru, the leading pan-European marketplace for short-term, property-backed loans today announces a funding round on Seedrs up to the initial value of €1M in order to fund an intensive technology roadmap and expansion plans. EstateGuru’s ultimate goal is to develop a digital, borderless ecosystem for real estate financing and investing.
The campaign launched in private mode for pre-registered investors only on 5 May 2021 and gathered €580 000 in a matter of hours.
EstateGuru finances projects which have solid collateral, using first-rank mortgages, to achieve straightforward and secure funding in real estate lending. This model is especially useful for entrepreneurs who struggle with the ‘one-size-fits-all’ policies of banks and gives everyone the opportunity to invest at an average historical interest rate of 11.4%. Throughout its history, there has been a €0 loss of capital for investors. Furthermore, 41% of new investors come from referrals and 90% of the investors invest regularly.
EstateGuru exceeded its first funding target of €350K on Seedrs by 261% in June, 2020. Funds from that round were used in three strategic areas: geographical expansion, delivering an ambitious technology roadmap and developing the area of capital markets and institutional investments. EstateGuru launched its operations in Finland and Germany, put in place a capital markets team in Amsterdam, integrated the Lemonway payment service platform and implemented the next phase of automated lead generation.
Marek Pärtel, Co-Founder and CEO of EstateGuru comments: “The initial response to this campaign has been overwhelmingly positive, with investors racing to join. This reflects well on both our track record and the market in general. We’ve witnessed major growth not only in business volumes but also in the quality of our processes and international team since our last round on Seedrs. This year, our focus is very much on institutional investors, technology, and maintaining our historical growth pace. We aim to launch several institutional loan products, including a Luxembourg-based debt fund, to support our platform activities, and move from our current, data-based decision making to 90% automated underwriting by 2025. We also plan to complete the development of our API powered investment app and start integrating it with other market participants. Geographical expansion is imminent, as this year we will open at least two new markets. And, as we truly believe in the importance and power of our community, we are very happy to give them a chance to participate in our current equity raise and welcome them to be part of this fantastic journey with us. That is the reasoning behind our next Seedrs funding round”.