Rubicon Capital launches crowdfunding campaign to raise £500,000
RUBICON Capital, the property development finance platform, has launched a crowdfunding campaign to raise £500,000 via Crowdcube.
The firm, which is backed by private investors, helps small- and medium-sized housebuilders secure finance to create new housing in the UK.
The money will be used to expand the team and the company, with £126,750 already invested with 10 days to go.
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Since the firm’s inception in 2015, it has arranged and managed more than £75m of investment and it made £500,000 profit in its second year.
It has provided assistance in more than 40 investments and says it has been profitable since it began, paying out dividends every year to investors.
Along with sourcing private and institutional investment it also helps builders access funding for developments under the Help to Buy scheme.
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Investors can buy ordinary shares in the company from £10 upwards via the Crowdcube website. At the moment the campaign has 58 investors and the largest investment is £30,000.
One of the reasons for the country’s housing crisis is that the alternative funding market for SME housebuilders remains limited, the firm said.
There are now 72 per cent fewer small- and medium-sized housebuilders than before the financial crisis in 2008, according to a recent report from Savills.
“Our company aim is to assist the much needed requirement for affordable housing the UK,” Rubicon’s owners, Giles Tagg and Keir Chastney, said in the Crowdcube pitch.
“At 31 and 33 we understand the difficulty for people to acquire the homes they want. We seek to assist those who can deliver such homes to those who work for the chance to own them.
“We believe this is perhaps the biggest issue facing this generation and ensuring homes are delivered is key to our company.”
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