Urbanitae, the Spanish real estate crowdfunding platform has just closed its second round of investment of 2,5 million euros.
This capital will boost the company’s growth, increasing its capacity to undertake a greater volume of operations and continue to offer to real estate developers an alternative to fund projects between 1 and 5 million euros.
This is the second investment round successfully carried out by Urbanitae, following their 2018 round of 1 million euros backed by VC funds K Fund, All Iron Ventures and Viriditas Ventures.
Urbanitae, which obtaining regulatory authorization to operate from the CNMV in 2019, brings together thousands of small and medium sized investors and enables them to access off-market real estate investments through crowdfunding. To date, the platform has funded 26 projects raising over 18 million euros and has reached break even, becoming the clear leader in the crowdfunding sector in Spain.
Additionally, and despite the impact of the pandemic, Urbanitae has successfully closed and returned four of the projects launched in 2019, with an average annualized return of 24%, which represents an overperformance of 50% of the estimated returns.
Good results in the first quarter of the year
“More and more developers are looking for alternative funding, encouraged by the massive investment appetite in the market, especially in the residential sector, and by the increasing restrictions brought up by banks with regards traditional credit,” says Diego Bestard, CEO of Urbanitae.
Urbanitae’s outstanding results in the first quarter of the year are clear evidence of the growing interest shown by investors and developers towards this funding model. In the first three months of the year, the platform has successfully raised € 5.9 million in 6 projects, all of which closed in minutes with over demand. The amount of capital raised in these operations represents 80% of the total funded by Urbanitae in 2020, and more than doubles the funding raised by all of its competitors put together.
Crowdfunding is proving that it is not only viable for small developers, with top developers such as Gestilar, Caledonian, Q21 or Iniciativas Inmobiliarias, have already trusted Urbanitae to carry out funding projects in different Spanish cities.
At the same time, Urbanitae is the highest rated crowdfunding platform in Europe, according to the review platform Trustpilot, and has ercently been included among the 35 Spanish start-ups with the greatest potential for 2021.