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The House Crowd

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Aiming to create a better financial future for our members, via high-quality property secured loans

149%
 - 
Funded 23 Oct 2019
£500,005 target
£751,191 from 469 investors
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Business overview

Location Altrincham, United Kingdom
Social media
Website www.thehousecrowd.com/
Sectors Finance & Payments Mixed Digital/Non-Digital Mixed B2B/B2C
Company number 07893395
Incorporation date 29 Dec 2011
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Investment summary

Type Equity
Valuation (pre-money) £28.9M
Equity offered 2.51%
Tax relief

EIS

  • Idea
  • Team
  • Updates
  • Investors 469
  • Discussion
  • Documents

Idea

Introduction

The House Crowd began life in 2012 as what we believe to be the world’s first equity-based property crowdfunding platform and has been one of the pioneers in this fast-growing industry. We started crowdfunding B2L property in 2012 and have evolved into an FCA regulated peer to peer lending (P2P) platform funding multi-million-pound property developments.

We have 27,560 registered members and have raised over £112M.

We offer a range of bridging and development loans giving investors the ability to choose the term, security, level of diversity and exit that suits their criteria. They can also invest tax-free via an IF ISA or SIPP. Typical rates we offer are 7-10%.

All loans are fully secured against the borrowers’ property.

With a dynamic team, we've already achieved stellar growth and, just as we recognised a brand new opportunity in 2012, we have identified what we believe are several other huge opportunities for growth.

We're raising funds to capitalise on these opportunities and drive value for investors.

Intended impact

Our mission is to make property, as an asset class, accessible to anyone who wants to build a better financial future for themselves. We've experienced great success in our first 7 years.

Currently, 63% of our investors are 45+. As baby boomers age, we expect to see a huge increase in investable assets. A portion of these people are property millionaires who will downsize and we expect will seek secure income-producing investments for their retirement. We aim to build on our existing success with this market.

Just as important for our growth are Millennials. With our exciting new brand Money Mog, we will seek to capitalise on what we see as a virtually untapped market of young professionals.

We've made a strong start, but, with the global P2P lending market set to multiply to $898bn by 2024, we've barely scratched the surface of what we believe can achieve. It's our goal to be recognised as the best provider of secured P2P property lending in the UK both through our direct to consumer brand and third-party partnerships.

Substantial accomplishments to date

We set out to build a unique, instantly recognisable brand; the antithesis of the financial institutions we're disrupting. We consider the strategy to have worked exceptionally well, attracting over 27,000 registered members

Key Stats:

Total amount raised: £112M

Total loans made: 211

Total properties funded: 400+

Total returns paid: £5,797,143.72

Total capital repaid: £45,589,484.80

Total investments paid back: 38,930

Loan book losses: Zero

Milestones

· 2013: £1m fundraising threshold

· 2014: £5M fundraising threshold

· 2015: first £1m fundraising month

· 2016: first £1m fundraising week

· 2016: £20M fundraising threshold

· 2017: £50M fundraising threshold

· 2018: first £1M fundraising day

· 2019: £100M fundraising threshold

Recognition

We're proud of our achievements to date and are equally as proud of the multiple prestigious awards we have won, including: AJ Bell Shares Magazine: Peer to Peer Lending Platform 2018 (beating off Zopa and Funding Circle who were also shortlisted), Property Wire’s Crowdfunding Platform of The Year 2017

245 reviews on Trust Pilot with a ‘Great’ Rating

Featured in trade and national press including: The Times, The Sunday Times, BBC2, The Financial Times, The Telegraph, The Daily Express, City AM, The Investor’s Chronicle, BBC Radio 4, The Guardian, ThisIsMoney.co.uk, The Metro, The Daily Mail, The Sunday Express, The Evening Standard and many more

Monetisation strategy

Development loans:

There are 3 revenue streams.

1. THC charges the developer a fee on monies raised.

2. THC makes a margin between the blended cost of capital and interest paid by the developer.

3. THC also receives a 10% success fee-based on the profits on 'House Crowd Developments' projects. As far as we are aware, we're the only P2P platform that benefits from this lucrative additional income stream.

Bridging Loans:

We charge borrowers an arrangement fee of 2% and make a margin on top of the rate paid out to investors c 4-5%.

Use of proceeds

The money raised as part of this campaign will fund a mixture of technological improvements, a new millennial brand and mobile app (Money Mog) and to effectively target three new markets. We will accept overfunding above our target as it will enable us to speed up our tech road map, market more aggressively and capture a greater share of our intended markets… and potentially reduce the amount we will require in any subsequent fundraise.

Summary of expenditure:

· Research and development to create proprietary technology, improve business intelligence, improve customer experience and improve conversion rates, improve CRM, integrate ASMX blockchain-based secondary market and further automate business processes: (30%)

· Creation of Money Mog mobile app (20%)

· Money Mog PR/marketing: (20%)

· Sales and marketing activity to promote our IF ISA (20%)

· Marketing to attract SIPP investment/ transfers (10%)

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

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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.

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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 £28,920,388

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.

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.

Warning

You are following a link outside of www.seedrs.com.

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

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