FutureBricks is an asset-backed lending platform for SME housebuilders and for retail investors.
- Raised over £3.2 million from lenders across 17 projects
- 5 successful exits at 12%, 18%, 9%, 8% & 13% gross interest
- Maintained a 100% track record and 0% default rate to date
- Investment conditional upon Future Fund funding - see Key Info
Learn more about convertible loan campaigns.
FutureBricks is an asset-backed peer-to-peer (P2P) lending platform for SME housebuilders who have limited access to mainstream finance. At the same time, we are making investing in property development accessible to all. Investments can be made from as little as £500 with gross returns of up to 10% per annum.*
Did you know?
🔨 Out of 345,000 houses needed annually in England, only 170,000 are built.
🔨 There is about £270 billion sitting in cash ISAs earning on average only 0.24% per annum.
How it works
Substantial accomplishments to date
We have been paving the way for a democratised investment platform within the property development industry. This is only the beginning.
Our Timeline Highlights
🧱 Launched an online platform and mobile application in 2018 with full-fledged automated lending.
🧱 Became an appointed representative of an FCA authorised firm and licensed under the P2P Lending Article 36(H) which allows us to accept retail investments.
🧱 Raised over £3.2 million from just retail lenders across 17 projects.
🧱 Over 650 registered lenders; the platform can accept investments from 110 countries.
🧱 5 successful exits already at 12%, 18%, 9%, 8% & 13% gross interest.
🧱 Maintained a 100% track record and 0% default rate of expected returns to investors to date.*
🧱 Upheld a 91% satisfaction rate of 5* or ‘Excellent’ on TrustPilot.
*As of 22 October 2020.
Hear from our SME Housebuilders
Our Recent Growth
🏅We have maintained a continued positive momentum, raising ~£1.8 million across 9 projects in 2020 alone, despite Covid.
🏅Total investment amount contributed by repeat investors is £1.15m (41% of the total investment amount), indicating a high retention rate.
Press & Awards
• Arya Taware, Founder and MD, shortlisted as FinTech Champion of The Year, Women in Finance Awards 2020
• FutureBricks is named one of the most promising high-growth tech firms in the UK, by SVC2UK
• FutureBricks shortlisted as “One to Watch” by London Business Awards 2019
We have a fixed fee model based on the loan amount which is charged to the borrower. This includes arrangement fees (up to 2%), exit fee (1%), and a margin (up to 2%) totaling up to 5% on each funded project.
As our platform grows, our potential revenue streams would also include additional fees such as monitoring fee for development projects, a platform fee and a subscription fee for corporate lenders.
Use of proceeds
Sales & Marketing (30%)
• Scale our marketing efforts to build brand awareness and continue growing our lender base. This will increase our pool of available capital that can be used to fund retail property projects.
• Expand our commercial team to uplift and expand revenue-generating streams.
• In our journey to provide the best offering to our users, introduce a series of new financial products and features including the Innovative Finance (IF) ISA and SIPP / SSAS investments.
• Enhance our data analytics capabilities.
Operational Capabilities (20%) and Other (10%)
• Fund working capital and capital expenditure requirements.
• Onboard strategic new hires.
We want access to asset-backed investments to be the new normal. Together, our mission is to back SME housebuilders as we aim to reach a loan book of £100 million in the next few years.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Convertible loans totalling £183,655.87, with the following key terms:
- Interest rate: 12% p/a (non-compounding), to be repaid or converted with principal loan.
- Maturity Date: 28 April 2022, which can be extended at the request of the company
- Conversion trigger(s):
On a raise of more than £500,000 (excluding the current Future Fund round), the convertible loan will convert at a 20% discount to the share price of the raise
On the earlier of a change of control or the Maturity Date, the loan will convert at the Company’s last priced round, being £25.37 per share.
- Share class: Most senior shares in the company or issued in any triggering funding round.
- Repayment: the loan, together with interest, is to be repaid (i) on the Maturity Date at the election of the company, (ii) an event of default (which includes insolvency) or (iii) a breach of the loan agreement at the election of the investor majority. The — The company may also redeem all or part of the loan (together with interest) at any time prior to the Maturity Date
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu...
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart...
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
• Discount: 20%
• Interest: 10% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
• Redemption Premium: An amount equal to 100% of the principal loan amount
• Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount.
• Maturity Date: 36 months from signing convertible loan agreement.
o The default position is on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem.
- If redeemed, the company will repay the principal together with the Redemption Premium.
- If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount).
• Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
o Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
o Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
o Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
Government Matched Funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. The Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m. The Future Fund is to be allocated on a ‘first come, first served basis’, so there is no guarantee that a company will receive the Future Fund matched funding.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round.
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
• The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
• The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
• There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
• Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
Open an account to get access to the team members of FutureBricks
Already have an account? Log in
To comply with financial regulations, we can only show full campaign details to registered users.