February 18, 2016
FinTech has been getting its hands into a wide range of industries until now. Emerging segments like RegTech and InsuranceTech are some of the most interesting ones as there is a tremendous opportunity for disruption and financial gain. Another industry that attracted the attention of talented entrepreneurs from FinTech is the real estate industry.
Crowdfunding is becoming a widely favored alternative to raising capital compared to seeking loans from banks. Crowdfunding is a way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in an organized way in the wake of the 2008 financial crisis, largely because of the difficulties faced by artisans, entrepreneurs and early-stage enterprises in raising funds. With traditional banks less willing to lend, entrepreneurs have started to look elsewhere for capital.
Crowdfunding has proved to be a successful fundraising model that can be applied across industries. As FinTech aims to democratize financial services internationally, crowdfunding platforms have been attracting projects of all kinds. This time, we will look at crowdfunding applied to real estate. Let’s look at some players in the UK market that are bringing the real estate business closer to the consumer.
Byoot Capital is a real estate investment and trading platform. Byoot allows investors to pool money together and buy shares in London properties.
The House Crowd is a UK property crowdfunding platform that helps users to benefit from property investments.
Crowd2Let is a property investment club setup administered by MRA Property Investments Ltd. in northeast England.
CrowdAHouse is a UK P2P lending platform conceived in early 2012 as the world’s first property crowdfunding platform.
Crowdfunder is a crowdfunding platform that connects projects with communities to make great ideas happen all over the UK and beyond.
CrowdLords is an equity-based crowdfunding property platform for UK residential property.
CrowdProperty offers property crowdfunding in the UK.
Mayfair&Morgan is a property crowdfunding platform that allows investing in high-yield residential property portfolios from as little as £1,000 with an annual growth of 13% to 16%.
Property Partner combines residential real estate crowdfunding with a secondary exchange upon which investors can trade their holdings.
Property Crowd is a UK real estate crowdfunding platform that operates under FCA regulations. Property Crowd provides aspiring property owners and experienced investors alike an innovative new way of owning high-yielding UK real estate trading companies.
Property Moose is a property crowdfunding platform that allows investments as little as £10. Properties are sold after a fixed term, which is shown clearly with every investment.
Real Funds is a P2P lending platform for small and medium-sized house builders. The company provides alternative capital to small-to-medium house builders, creating competition for more and the right kind of housing supply.
WallRise is an online marketplace that connects real estate developers seeking funds for their projects with investors who are looking for new investments.
Bnk To The Future is an equity crowdfunding platform that allows anybody to invest in private companies online.