Multi-award winning online property lending platform offering returns of 7-12% p.a.
- Bespoke tech platform serving borrowers and property investors
- Well-established in the market; 125% annual growth in live loans
- Proven business model with gross profit margin of 72%*
- £132m paid in capital and returns with zero investment losses
CapitalRise is an award-winning, FCA-regulated property finance platform built by experienced developers and investors. We provide access to real estate investment opportunities in prime areas such as Chelsea, Mayfair and Kensington.
Using our bespoke technology platform, CapitalRise:
● makes it easy for property borrowers to raise finance quickly and efficiently;
● provides investment customers with access to institutional quality real estate, previously only available with high minimum investment amounts, offering returns of 7-12%.
Well-established in our market, we focus on Prime London and Prime Home Counties, some of the most resilient parts of the property market. Our founders bring decades of property and fintech expertise and invest personally in every loan.
We are scaling rapidly with a successful track record, we believe this creates a strong investment proposition.We have demonstrated the strength of the business through the challenging economic environment of recent years.
Examples of properties funded:
Substantial accomplishments to date
● Proven business model with gross profit margin of 72%
● Revenue has doubled over 2 years to £3m
● £280m of facilities agreed, secured against assets worth £784m
● 125% annual growth in live loan book
● 120% annual increase in repeat borrowers
● £132m paid to customers in capital and returns
● 8.3% annual returns to customers
● Zero investment losses or defaults
* Revenue information from management accounts
● Our asset management function and diversified funding sources fund growth of our loan book
● £350m of funding lines agreed from banks and other financial institutions to support ambitious growth targets
● This should reduce cost of capital and enable us to write larger loans, driving lending volumes and profitability
● Authorised and regulated by the Financial Conduct Authority (FCA)
● “Excellent” Trustpilot score of 4.8, highest among nearest competitors
● Winner of multiple awards including the British Business Bank Award 3 years in a row
● Fully-automated customer onboarding and bond issuance
● Manage investments online & via mobile
● Resale marketplace
● Fully automated client money handling functionality
● Bespoke borrower & loan CRM portal
● Proprietary portal for Wealth Managers - streamlines onboarding & portfolio management
● 3rd Seedrs raise. A top 10 Seedrs raise in 2019, 156% overfunded
● £1m raised from Venture capital firm Revolt Ventures
● All founders are investing in this fundraise
Revenue is earned from fees charged to borrowers for the arrangement of the loan and through a margin between the interest rate charged to borrowers and the interest rate paid to investors.
● 3-7% of the gross loan amount, this is our core revenue:
o Arrangement fees
o Exit fees
o Interest margin
● Revenue as % of gross loan:
Further fees may be charged, such as:
o Extension fees in the event that a loan requires an extension
o Monitoring fees
o No fees to invest
o 1.5% fee charged to sell an investment on the resale marketplace
Use of proceeds
We see huge opportunities in our market:
● £2.5 billion of deals screened in past year demonstrating the huge opportunity to grow market share
● 60% annual increase in live platform investments YTD March 2023 demonstrating customer demand
To accelerate growth, we plan to invest in the following areas. All are significant drivers of value for the business:
● Our exceptional team possesses the expertise to scale the business
● Further growth planned in our developer and lending teams
● Tech investment is central to our strategy
● Investor platform is fully automated
● We will enhance our lending portal for smoother interaction with borrowers and improved borrower acquisition
● Data visualisation tools to maximise profitability of customer base
● New products to provide greater variety of investment options for customers and further diversify funding sources
● New products to open up additional distribution channels making it easier for a wider range of institutions to invest
Conversion of Convertible Loan Note
This raise will trigger the conversion of the Future Fund Convertible Loan Agreement (the ‘CLN’) which was entered into on 30th December 2020, meaning shares will be issued to the loan holders at a 20% discount to the share price set by this round. Key details of the CLN terms are set out below:
Principle loan amount: £2,300,660
Interest: 8% per annum.
Please note that the shares to be issued on conversion of the principal loan amount of £2,300,660 have been factored into the pre-money valuation for this campaign. Shares relating to the 8% accrued interest, however, have not been reflected in the valuation as these can only be calculated once a completion date has been set between parties.
Any shares issued in respect of accrued interest will not benefit from the 20% conversion discount under the CLN.
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