THE HOUSE Crowd is looking to raise up to £1m on Seedrs in order to expand its product range, develop a new brand and improve its technology.
The peer-to-peer property development and bridging lender will offer 3.4 per cent equity to investors as part of the financing, giving the company a valuation of £29m.
Initially the company was targeting £500,000 to £750,000, but early interest from The House Crowd’s 27,000-member database pushed the amount towards £1m.
“We put out a message this week and we have already had over 360 people pledge or express interest in funding us, which is very encouraging,” chief executive Frazer Fearnhead (pictured) told Peer2Peer Finance News.
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The Seedrs public launch is expected to go live on 9 September. A private launch will begin five days earlier on The House Crowd website, with pre-registration required.
“We want to do four things [with the proceeds],” said Fearnhead. “Firstly, we have created a new brand aimed at millennials, called Money Mog. This is a section of the market which has not been widely targeted by P2P firms.”
As Peer2Peer Finance News previously reported, Money Mog will offer annual returns of up to 5.5 per cent on P2P investments secured by UK property. The deposit is just £100, with a minimum investment of £50 a month.
“Secondly, we are creating a blockchain secondary market with ASMX,” Fearnhead added.
“Thirdly, we are creating a white-labelled SIPP product so investors can include The House Crowd investments as part of their pensions.”
And finally, Fearnhead said part of the capital raised would also be used for tech stack upgrades across the company’s website and back end.