Proportunity, Proptech’s neo-lender, raises $ 150 million in mixed debt and stocks – TechCrunch

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You have heard of neo-banks. Meet the Neo-Lender. One of the most recent is based in London Luck. He has now raised a mixed $ 150 million debt and equity round table ($ 7 million in equity financing and $ 143 million in debt), in addition to his $ 10 million round. dollars in 2020.

The round was led by VentureFriends, Kibo Ventures and existing investors Anthemis, Entrepreneur First as well as new UK proptech investors Amro Partners. The startup plans to use this funding to grow its team, as well as to increase its maximum loan amount from £ 90,000 to £ 150,000 per house.

Some 85% of tenants in the UK want to own their own home, but are unable to do so due to high deposit requirements and rapidly rising house prices.

Proportunity says it offers homebuyers a home equity loan, similar to the UK government’s ‘Home Buyers’ program, but available for any home, not just new construction . This allows them to afford housing with just 5% down payment, reducing the amount they need to save. The Proportunity Equity Loan of up to £ 150,000, or 25% of the price of the house, is on top of the maximum mortgage they get from a traditional lender. The equity loan, in addition to the mortgage up to 4.5 times their income, allows them to effectively borrow up to six times their income.

The company says it can do this through its machine learning that helps identify homes at fair value in areas with high growth potential, reducing lending risk and removing the need for a large deposit.

Vadim Toader, CEO and Co-Founder, said: “In the UK there is a £ 100-200,000 gap between what buyers want and what they can afford, mainly because lenders limit what that they will lend at a maximum of 4.5 times the income and deposit requirements. Combine that with rising home prices and the need for an extra bedroom in the new “work from home” environment and it’s easy to see that buyers are facing a losing battle. “

VentureFriends partner George Dimopoulos said: “In Proportunity, we have seen a product that can positively impact the lives of thousands of BHBs. “

Proportunity has three main competitors: Generation Home – a new version of collateral mortgages, which greatly helps in structuring financial aid from family / friends. Wayhome (aka Unmortgage) offers a private version of shared ownership that combines renting with a mortgage deposit.


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