Bricklane.com, an online property ISA, has raised £1.3m in seed funding from Zoopla and LocalGlobe.
The round also drew support from an undisclosed group of angel investors from the financial services, real estate and technology sectors.
Bricklane.com seeks to help ‘Generation Rent’ save money for a home by allowing them to own a stake in the property market.
“The problems facing ‘Generation Rent’ are all too familiar. With Bricklane.com, we want to support renters in doing something about it. Our aim is to help those saving for a first home to get on the ladder years earlier than they would by saving with cash. Alongside, we will provide a great service to residents of properties owned by our community of savers,” commented Simon Heawood, one of the co-founders.
Tom Cavill, co-founder, added: “Through innovative technology and thoughtful design, we’re aiming to make the property market more inclusive. With Bricklane.com, anyone can own property, whatever their financial position.”
The platform, a statement explained, works by combining its innovative investment platform with a traditional financial structure known as the Real Estate Investment Trust (REIT).
The first fund will invest funds in properties across Birmingham, Manchester and Leeds. A second fund, due to launch in the near-future, will invest funds in properties across London.
Solving the housing crisis
Robin Klein, founding partner of LocalGlobe, commented: “Bricklane.com’s product is an elegant, tech-enabled answer to the problems of the housing crisis, and could help a whole generation of people who feel shut out of the market gain an entry.
“Their Property ISA connects savers with investments in a uniquely user-friendly way that could revolutionise the way young people save for their first home, as well as providing a higher quality service for tenants,” he added.
Speaking about the raise, Alex Chesterman, founder & CEO of Zoopla, commented: “Bricklane.com has come up with a saver-friendly product that is especially useful for first-time buyers saving towards a deposit and sees the property market from the renters’ perspective, for the first time.
“We wanted to invest and partner with Bricklane.com due to the strength of the product, innovative thinking from the team and clear fit with our users,” concluded Chesterman.
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