EstateGuru, which offers short-term, property-backed loans, has closed its Seedrs funding round on 252% more than its initial target.
The FinTech platform had initially been aiming to raise €350,000 through its crowdfunding campaign; however, it was able to close the round on €880,000.
With the close of the investment, EstateGuru has become the first Estonian business to successfully fund on the Seedrs platform.
This investment is part of a wider €5m Series A round it is raising.
With the funds from the crowdfunding, EstateGuru is looking to accelerate geographic expansion, continue with its technology roadmap and developing solutions for capital markets and institutional investments.
Finland, Germany and the UK are the main priorities for EstateGuru’s expansion plans this year.
EstateGuru is a crowdfunding platform for real estate loans. All loans available to invest into are secured through mortgages. The company’s team investigates the viability of each project before they are opened up to investors.
To help simplify investing, Estate Guru supports automated investing, with the user simply setting preferences of how much they would like to put into projects.
EstateGuru co-founder and CEO Marek Pärtel said, “We’re delighted to see that so many people around the world believe in alternative financing and new business models. Our campaign happened to go live during the deepest crisis and yet, over 1000 people from 37 countries trusted and supported us.
“The largest number of investors came from Germany, where we have our biggest platform investor community as well, following by Great Britain, Estonia, the Netherlands and Lithuania. Great Britain also happens to be on our priority list for expansion.”
Late last year, the company claimed that since 2014 its property-backed lending solution has helped finance 1,046 loans. The majority of these loans were in Eastern Europe, with Estonia picking up 68.27% of the loans. Latvia, Lithuania and Finland had received 17.92%, 12.24% and 1.37% respectively.
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