Residential property crowdfunding platform Property Partner has announced a £5.2 million funding round.
Property Partner enables people to invest as much or as little as they like in individual residential properties, just as they can in company stocks.
The new investment, led by Index Ventures, will be used to help Property Partner create a "global stock exchange" for residential property, offering properties across the UK and beyond.
Index Ventures join Property Partner's existing investors Octopus Ventures, Seedcamp and Ed Wray (co-founder of Betfair).
Launched in January this year, Property Partner currently lists properties in London and South-East of England. The properties are selected by director of property Robert Weaver, RBS' former global director of residential investment.
To date, more than 1,000 people have invested sums ranging from £50 to £50,000 in homes through Property Partner's crowdfunding platform, with the average investment size rising continually since launch.
In addition, says Property Partner, there has already been "significant activity" on its unique "resale" market, where investors can buy and sell shares in fully-funded properties. For example, the first property to be crowdfunded on the Property Partner platform, a house based in Croydon, South London, has seen more than 50 percent of its shares traded on the resale market.
As a result of the new investment, Neil Rimer, co-founder of Index Ventures and Ed Wray will join Property Partner's board of directors. Both are also directors of Funding Circle, the fast-growing peer-to-peer lending marketplace.
"Index are a great investor to have on board, with really deep experience in both fintech and cross-border growth," said Daniel Gandesha, Property Partner's CEO. "I can't imagine anyone better placed to help us deliver our long-term vision for Property Partner - as a global stock exchange for residential property."
Rimer said: "A reinvention of residential property as an asset class is currently underway. It is being democratised and opened up to a far broader range of people, who can now invest without the hassle and liquidity problems that have traditionally plagued direct investment in property."
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