European property-backed lender EstateGuru has launched a new funding campaign to raise €1m (£870,000) on Seedrs.
The campaign was initially opened up to pre-registered investors only on 5 May 2021, and gathered €580,000 within a matter of hours.
The Estonia-based marketplace for short-term, property-backed loans wants to raise money to fund an intensive technology roadmap and expansion plans. Its ultimate goal is to develop a “digital, borderless ecosystem for real estate financing and investing”.
Last year, EstateGuru launched its first Seedrs funding round, ultimately exceeding its target by 252 per cent to raise €880,000.
Since then the platform has expanded its operations into new markets such as Finland and Germany, put in place a capital markets team in Amsterdam, integrated the Lemonway payment service platform and implemented its next phase of automated lead generation.
“The initial response to this campaign has been overwhelmingly positive, with investors racing to join,” said Marek Pärtel, co-founder and chief executive of EstateGuru.
“This reflects well on both our track-record and the market in general. We’ve witnessed major growth not only in business volumes but also in the quality of our processes and international team since our last round on Seedrs.
“This year, our focus is very much on institutional investors, technology, and maintaining our historical growth pace.”
The platform also revealed that it intends to launch several institutional loan products, including a Luxembourg-based debt fund, to support platform activities. Its aim is to move from its current, data-based decision making to 90 per cent automated underwriting by 2025.
“We also plan to complete the development of our API powered investment app and start integrating it with other market participants,” said Pärtel.
“Geographical expansion is imminent, as this year we will open at least two new markets. And, as we truly believe in the importance and power of our community, we are very happy to give them a chance to participate in our current equity raise and welcome them to be part of this fantastic journey with us.
“That is the reasoning behind our next Seedrs funding round”