Propnology benefits from the crowd

Propnology benefits from the crowd

Propnology, a Colchester start-up providing a unique crowdfunding platform for property investors, has raised over £70,000 from crowdfunding as it looks to revolutionise the property market.

Propnology is a property crowdfunding platform, allowing individuals to invest, from as little as £500, into a range of residential and commercial property investment opportunities throughout the UK.

Each property is held within its own private limited company and retained for a pre-defined period of between 3 and 10 years, depending on the specific opportunity. Throughout the investment term, income is paid to investors in the form of monthly or quarterly dividends.

The company, which is authorised and regulated by the Financial Conduct Authority, was set-up by Essex entrepreneurs Paul Lamm and Owen Angel in 2014 and manages property across the UK on behalf of its investors.

Having already established a growing network of retail, sophisticated, high net worth and institutional investors, the duo launched a crowdfunding campaign via Seedrs in a bid to raise £52,000 to help the business continue growing. After only two months, a total of 106 investors have invested in the start-up, helping raise a total of £71,383.

In a statement, the company’s directors said: “Propnology has huge potential for development, by deploying the brand and technology, in global markets, and by encouraging overseas clients to use crowdfunding as a means of investing in UK property.”

They went on to say: “Fundamentally, the intention of this funding round is to increase awareness of the Propnology brand, and grow our community of investors, in preparation for a more substantial round that will enable us to underwrite acquisitions.”

According to industry researchers, Massolution, property crowdfunding has expanded globally by more than 150%.

The market is predicted to grow from £1.6bn in 2015 to £2.3bn in 2016. This represents the fastest growing segment of the crowdfunding market.