Unmortgage, a UK-based residential rent-to-own specialist, has raised £10m in fresh funding.
Augmentum Fintech, a European FinTech venture capital investor, contributed £2.5m to the seed round. Existing investor Exponential Ventures, and other investors also participated in the round.
Tim Levene, CEO of Augmentum Fintech, said: “One of the things we look for in a potential investment is a business that is genuinely pathfinding in a sector which is ripe for innovation.
“In too many cases home-ownership remains out of reach for people, and the Unmortgage model addresses in an innovative way how people can access the homes they both need and want. The business is also attracting FinTtech talent who want to participate in a business that has at its heart a social purpose.”
The London-based startup, which aims to launch in 2019, wants to help first-time buyers get on the property ladder.
Unmortgage offers a co-ownership model, meaning buyers put down their deposit and partners buy the rest of the property. As buyers’ ownership increases, their rent payments decrease.
It requires as little as 5% deposit with customers paying a market rent on the portion of the home that Unmortgage owns, with the ability to increase the equity in the property as their financial circumstances allow.
Augmentum targets ‘exceptional, fast growing’ UK and European FinTech businesses at Series A and B investment stage. Last month, the firm invested £2m as part of a £8m Series C round for DuelDil. The company provides a web platform and API as an end-to-end solution for new business prospecting, compliance on-boarding and risk assessment and monitoring.
Its portfolio also includes crowdfunding platform Seedrs, online broker interactive investor, P2P lending platform Zopa, challenger bank tide, and supplier payment company previse, among others.
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