CAPITALRISE, the online property finance marketplace, has closed its fastest-ever fundraising round after its £1.4m target was reached in under four days.
CapitalRise said on Monday that two thirds of investors funded the deal using its Innovative Finance ISA, which offers target returns of eight per cent per annum.
Whilst the majority of ISA investors used their 2017/18 allowance, a significant minority opted to prepare for the coming tax year by using their 2018/19 allowance, the company said.
The investment raised will be used by an experienced property developer to fund three completed homes in Warwickshire.
“The timing of the launch of this opportunity was perfect, as it straddled the end of the old tax year and the start of the new one,” said Uma Rajah, chief executive at CapitalRise.
“We were able to serve all those investors wanting to fully utilise their current ISA allowance as well those wanting to get ahead and secure their 2018/19 ISA at the beginning of the tax year. We were thrilled to see 66 per cent of customers opting to use the CapitalRise IFISA to invest.”
The firm said it has returned over £2m to investors over the past four months, following the successful completion of both its Eaton Square and Knightsbridge projects.
CapitalRise said it expects to launch further opportunities to investors in the early part of this tax year.
“At a time when continued low interest rates mean investors should look at alternative options for generating yield, our prime property investments offer a very attractive risk-weighted return,” said Rajah.
“The popularity of this opportunity has really highlighted there is strong demand for this type of investment.”