The venture capital fund has taken a stake in a new residential property start-up to take advantage of the house price boom
The venture capital firm behind companies including Just-Eat, Funding Circle and Deliveroo has led a £5.2m investment into a new property website designed to allow investors to benefit from the uplift in the buy-to-let market with as little as £50.
Index Ventures led the funding round into Property Partner, which is a so-called crowdfunding platform for residential property. The company likens itself to a stock exchange for the property market, allowing individual investors to back property without actually physically taking control of it.
Index joins a series of well-known technology investors, including Ed Wray, the co-founder of Betfair, and Seedcamp, an investor in Transferwise.
Property Partner was established in January this year by Daniel Gandesha, and early backers included Jon Moulton, of Better Capital, and Andrew Griffith, the chief financial officer of Sky.
Investors can own a share, on which they receive rental income and capital growth, and can trade their holdings on an exchange.
The properties are selected by Robert Weaver, a former director at the Royal Bank of Scotland. To date, approximately 1,000 people have invested between £50 and £50,000.
Neil Rimer, co-founder of Index, said the company is part of a “reinvention of residential property as an asset class.”
“It is being democratised and opened up to a far broader range of people, who can now invest without the hassle and liquidity problems that have traditionally plagued direct investment in property,” he continued.
Source: the telegraph