Landbay, one of the first ever businesses to successfully raise investment through Seedrs, has today closed their 6th investment round on the platform.
The specialist mortgage marketplace lender has raised £6.5 million in total since its inception and provided the opportunity for investors to participate via Seedrs in each funding round.
Landbay, whose backers include Zoopla, direct-matches retail and institutional investors’ funds into buy-to-let mortgages, using peer-to-peer technology. Quickly establishing itself as an innovative and responsive lender in the buy-to-let space, Landbay recently surpassed £100 million of mortgages funded to date with zero arrears. Over 25% of this was in the last 3 months, demonstrating the startup’s impressive growth.
Landbay joined forces with Seedrs for the first time in 2013, raising £71,590 at a pre-money valuation of £616,667. 6 funding rounds and 796 unique investors later, the company has raised £1.6m at a pre-money valuation of £28.9 million in its latest funding round. For those that invested in Landbay’s first round on Seedrs, their non-tax adjusted internal rate of return (“IRR”) on their investment is an impressive 77.83%, as of the 17th March 2018.
In addition, since Seedrs launched its pioneering Secondary Market in June 2017, allowing investors to buy and sell shares in businesses that have funded on Seedrs. Landbay has been the third most popular business in share transactions, with 54 share lots traded. The launch of the only fully functioning Secondary Market in the UK by Seedrs has given Landbay investors the choice to either realise returns or indeed increase their stake in the company. Seedrs' product innovation has changed what was historically not possible in early stage equity.
John Goodall, Chief Executive Officer at Landbay, said: “The fact that we have worked with Seedrs on every funding round since 2013 demonstrates our commitment to the crowd for their unwavering support. The first four years of the business have been spent building a strong foundation and the investment we have received through the platform has played a big part in this. Investment from this round will be used to continue to grow the business as we expect to become profitable by the end of 2018.”
Jeff Kelisky, Chief Executive Officer at Seedrs, said: “Landbay is a great example of the positive results possible with equity crowdfunding done properly, how instrumental it can be in the future of early stage businesses, and the positive returns it can generate for investors. It has been fantastic to support their journey and contribute to Landbay's ongoing success.”