Property investment platform. Helping property asset managers onboard and manage their investors
- Secondary market built, and launching this year
- 5 investments exited, all achieved projected returns
- Exited investments achieved average return of 11.3% per annum
- £14m invested through the platform to date
Brickowner aims to become the leading service provider for property developers and asset managers wanting to improve the cost and efficiency of onboarding and managing their investors.
Brickowner successfully caters for two client groups and has repeat business from both groups:
1. For property asset managers, on-boarding and managing investors is becoming increasingly complicated. We have automated this process, making it significantly cheaper and quicker than offline processes. We manage their investor onboarding - Anti Money Laundering (AML), Know Your Client (KYC), investor categorisation, and escrow requirements.
2. We continue to have crowd investors as our other customer group. They often find it hard to identify or access professionally managed property investments. Such investments are mostly not well marketed, nor open to investors wishing to invest smaller sums. We aggregate these investors and automate the on-boarding so asset managers are able to take their investment.
Substantial accomplishments to date
We have successfully exited 5 of our investments, all of which achieved their projected returns. Including two investments exited successfully during 2020, despite market issues caused by COVID-19. For our 5 redeemed investments we have achieved an average annualised net return to investors of 11.3%.
We have completed the build of our secondary market which we will look to launch imminently. We expect this to significantly help our business grow in 2 main ways.
1. We believe having a secondary market will give investors comfort to invest greater amounts for longer terms.
2. Increase our revenue with extra fees charged for using the secondary market.
We have recently come to an agreement with another platform exiting the retail investor space to onboard their investors to our platform.
£14m had been invested through the Brickowner platform to date.
We have over 3000 investors registered on the platform, with over 700 active investors. Our repeat investment rate is 65%.
We have a 25% conversion rate of sign-ups who become investors, compared to an industry standard of 12%.
Since 2017 the single investment size on our platform grew from a maximum of £10,000 to £200,000.
We have repeat business from our asset manager clients and investors.
We outline our fees within the property term sheet for each specific investment. We typically charge 2 fees to the property asset manager / developer:
1. 0.75% per annum of the amount invested.
2. An upfront placement fee of 5%.
Fees vary from investment to investment, depending on the size and type of the deal. Some investments also have an exit fee.
Further fee generation will be possible from new products we are planning to launch later in 2020/21. Examples of the new revenue generation are:.
- The secondary market where a fee will be charged to sellers.
- Brickowner-themed auto-invest funds. We are looking to create our own themed funds using an auto-invest function. This will allow for instant diversification across a pool of investments. An extra fee would be charged for this.
Use of proceeds
This present raise will help accelerate the growth of Brickowner, with the investment going towards:
1. Technology investment, adding new features including the auto-invest function.
2. Strategic senior hires to expand marketing and compliance.
3. Increased marketing spend.
We continue to follow a strategy towards sustainable growth.
Please note that the business entered into a £50k bounce back loan in August. The loan has zero interest for the first year and then attracts 2.5% per annum for the following 5 years.
Funds raised will not be used to pay this loan.
The company has an outstanding advance subscription agreement from a previous raise on Seedrs (details of which can be found here: www.seedrs.com/brickowner7). This will convert to equity if the company raises at least £150k. The intention of the company is to trigger the convertible as part of this round and we have priced the effect of this in the pre-money valuation.
If the company doesn’t raise £150k then the convertible will not convert and will remain outstanding until the longstop date.
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