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EstateGuru

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EstateGuru is the leading cross-border marketplace for short-term property backed SME loans.

255%
 - 
Funded 5 May 2021
€500,002 target
€1,401,031 from 937 investors
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Business overview

Location Tallinn, Estonia
Social media
Website estateguru.co
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 12558919
Incorporation date 24 Oct 2013
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Investment summary

Type Equity
Valuation (pre-money) €49M
Equity offered 2.54%
Share price €36.07
Tax relief N/A
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Business highlights

  • €340 million of property backed SME loans funded
  • 80 000+ investors from 100+ countries
  • Lending activities in 8 countries
  • Operationally profitable!
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Key features

  • Secondary Market
  • Seedrs nominee min. €36.07 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 937
  • Discussion
  • Documents

Idea

Introduction

EstateGuru (EG) is the leading Pan-European marketplace facilitating property-backed loans for SMEs and carefully selected investments for our global investor base. By connecting different service providers, SMEs and investors into one single marketplace, we can offer something unique that other financial institutions cannot – the seamless, cross-border and digital service for borrowers and investors. The team consists of 60 professionals from 13 nationalities based in 8 countries.

Since 2014, EstateGuru has expanded to offer investments in 8 countries, facilitating more than €340m worth of loans and rewarding its 80 000 investors with €25m in interest payments.

EstateGuru facilitates projects with a solid real estate collateral, using mortgages to achieve straightforward and secure funding. 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 interest rate of 11.4%.

Substantial accomplishments to date

In 2020, EG raised nearly €1m on the Seedrs platform during the most hectic period of Covid19. Despite the market downside and low level of consumer optimism, EG managed to oversubscribe the campaign target three-fold.

EG made a commitment to:
- Increase its loan volumes;
- Expand to new markets;
- Establish the capital markets team;
- Increase the output capability of our IT team.

During the past year, the growth of the business volumes has been great - we exceeded €10m monthly loan volume September 2020. In December 2020, we exceeded €18m and in March 2021 we hit €21m of loans issued!

Morerover, EG managed to fully launch in the Finnish market and is in the final stage of switching over to a fully operational mode in Germany. In parallel, we are preparing the first test and learn loans in the Netherlands.

Within the past year, the company has grown its head count from 43 to 60. In 2020, Dr. Gabriella Kindert joined our Supervisory Board thereby bringing along an extensive experience in the Capital Markets field. In January 2021, we recruited our Director of Capital Markets. Under their command, EstateGuru is moving ahead with executing its capital markets roadmap, the first step of which is finalising the establishment of a debt fund.

Our IT team has increased by 7 FTE-s and main accomplishments in 2020 include:

a) The integration of Lemonway;

b) Implementation of the next phase of automated lead generation;

c) Streamlined back-office process for loan application and scoring.

Monetisation strategy

EstateGuru has several revenue streams and is working on further diversification of the revenue sources.

The majority of the company’s revenue (80%) is generated from success and administration fees paid by the borrowers upon funding process success and during the loan term. The success fees typically range between 2.5-4% which is calculated from the funded volume. Our current annual administration fee is in the range of 0.5-1%.

Additionally, the company earns revenue from transactions that occur on the Secondary Market - a 2% fee is applied to the investor who sells a claim on the Secondary Market.

As the company’s strategy entails securing more institutional capital (10% of loan volume in 2020 vs a target of 30% in 2021), additional revenue is generated from the interest spread, management and success fees paid by these institutions. We believe this source of revenue will start producing an equal contribution to our profit margin as that generated by the success fees from borrowers.

Use of proceeds

EstateGuru is raising its second stage of capital with Seedrs now as part of the ongoing A-Round.

The allocation of the raised funds will be similar to the previous funding round:

EstateGuru continues with fulfilling its expansion roadmap by entering the United Kingdom and the Netherlands;
Recruiting a full Capital Markets team and finalising the set up of a Luxembourg Debt Fund;
Strengthening the IT infrastructure for delivering significantly higher loan volumes and serving 2-3 times more investors than the current 80,000;
New investment product published by end of 2021!

Key Information

Please note that Seedrs' share price for the round has been rounded to EUR 3,607 in order to facilitate an investment multiple of EUR 36.07. Direct investors in the round are investing at a share price of EUR 3,606.59.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €49,019,130

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Warning

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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