ASSETZ Exchange has now raised almost £394,000 on Seedrs and is seeking at least £700,000 before closing its fundraise.
The new buy-to-let platform, which was set up by peer-to-peer lender Assetz Capital’s parent company Assetz Group, was initially seeking £350,000 when it launched its equity crowdfunding campaign.
However, it is now in overfunding, having raised £393,084 as of 28 August. In an update on Seedrs earlier this month, Assetz Exchange director Peter Read said that the firm will accept at least 200 per cent funding – equating to £700,000 – before it closes the campaign.
Assetz Exchange soft-launched in May 2019 and is now fully live. The platform lets investors fund loans via a special purpose vehicle which buys and manages the properties. The properties are sourced by sister company Assetz Property’s network.
The minimum investment for all projects is £15.
Read more: Assetz funds £300m in a year
The proceeds of the fundraise will be used to develop the website and back-office accounting systems, to expand the team, for working capital and for marketing activities.
Stuart Law, chairman of Assetz Exchange, which is regulated through permissions from Assetz Property, said the idea was to help alleviate rather than contribute to the housing crisis.
“We want to purchase either existing tenanted properties or fund the creation of new ones,” he told Peer2Peer Finance News in January this year.
“Assetz Exchange provides not only rental income to investors who share in a property investment, but also exposure to gains and losses from the underlying property price changes.
“The business is aimed at a different type of investor to Assetz Capital and we expect that Assetz Exchange will replace many other old-style buy-to-let property agency sales over time, as a result of being far simpler and more tax efficient than traditional buy to let. It is still a crowdfunding approach however, and one that makes buy to let far easier to access for the mass market.”
Sister company Assetz Capital has also been successful on Seedrs. Last month, it raised £1.86m on the platform after initially seeking to raise £1m.