Justhome, a next generation home financing startup, has collected €3.3m in its pre-seed round.
The investment was led by Target Global, with capital also coming from APX and Porsche.
With the capital, the company plans to expand its home financing platform and develop its own financing solutions.
The platform launched earlier this year to simplify the homebuying process. Its digital service helps people afford homes in a challenging economic backdrop.
Justhome stated that home ownership in Germany is the lowest among other EU countries, with a rate of around 45%. Based on research by the German Economic Institute, Justhome estimates over 300,000 first-time prospective homebuyers are unable to access the market each year.
The Berlin-based startup supplies homebuyers with a digital experience for the mortgage process, with the chance of finding pre-approved mortgage options from 700 lenders.
Its vision is more than improved brokerage. Currently, it is building financing solutions of its own that are aimed at first-time homebuyers.
Justhome CEO Johannes Fenner said, “Nine out of 10 Germans below the age of 30 want to own a home in the future, an even stronger trend post-COVID. That’s why we are so determined to provide financial solutions to help this generation become homeowners in a way that is convenient and native to them: digital and self-driven.”
Speaking on the deal, Target Global partner Ricardo Schaefer added, “We have increasingly observed the global appetite for more customer-centric and innovative home financing solutions. With Justhome, we found an extremely ambitious team that is really looking to shake up the market to address that demand. We are excited to be part of this journey, which has only just begun.”
There have been several large seed deals in H1 2022 in Germany. The largest deal to close was a $16m round by lemon.markets. The company builds brokerage infrastructure for stock trading.
A total of $151m was raised through seed stage deals in Germany during the first six months of 2022. There were 39 deals, with the top ten bagging $98.4m.
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