ProntoPiso, the proptech property chain specialist that guarantees that homes will sell in 90 days, has announced the signature of the first real estate venture debt agreement in Spain, worth up to €4.5 million. The operation, whose stakeholders are Sabadell Venture Capital, Inveready and other private investors, will enable ProntoPiso to guarantee the payment of amounts due to property owners in under 90 days until at least mid-2019. This venture debt agreement is the first to be signed in Spain using real estate collateral.
The venture debt agreement signed by the company will permit the creation of a second debt fund to guarantee its financing operations. All ProntoPiso’s real estate transactions will include this line of credit, which may be increased, depending on the evolution of ProntoPiso’s business. This method of financing allows companies to finance all their debt while maintaining control over management and operations.
“Signing a venture debt agreement with strong partners like Banco Sabadell through its risk capital division, Sabadell Venture Capital, or Inveready is a strategic move that is sure to catapult ProntoPiso operations between now and year end”, said Diego Paradinas, COO and co-founder of ProntoPiso. “This capital injection will enable us to start operating in Valencia and boost our business in Madrid and Barcelona, where we are already operating”.
ANDRÉS PLA TALKS
“This financing product shows that the Spanish entrepreneurial ecosystem is innovating beyond traditional lines of credit and financing”, said Andrés Plá, CEO and co-founder of Prontopiso. “Being Spain’s first proptech company to secure venture debt financing is a privilege for us and big news for the real estate sector”.
The company has become one of the most high-potential proptechs on the current scene. Its innovative approach makes it unique in Spain, as it focuses on the niche market of buyers who needs to sell their home in order to buy another. ProntoPiso guarantees the sale of homes in under 90 days and, if the sale has not closed within this period, the company advances the client 95% of the market value of the home, converting the buyers into cash buyers. When the sale goes through, the remainder is paid to the owner. With this new concept, customers are guaranteed their money in 90 days.
FOUNDED BY ANTAI VENTURE BUILDER
Co-founded in October 2017 as part of Antai Venture Builder by Andrés Pla, Diego Paradinas, Gerard Olivé and Miguel Vicente, the company raised funding of over €3 million (€1 million in equity and €1.8 million in the first debt fund) to start operating in Madrid and Barcelona. The stakeholders in the deal were Antai Venture Builder, Global Founders Capital –that has in the portfolio companies such as Funding Circle, Billie, Revolut, Nested or Anyfin-, German investor Picus Capital and Global Growth Capital. The public companies supporting these entrepreneurs included ENISA and ICF, which contributed €200,000 in financing, respectively.
The company recently raised a €1.5 million capital increase from Antai Venture Builder and German fund Picus Capital and from new shareholders, accompanied by a media for equity agreement with Media Digital Ventures. Now, this injection of up to €4.5 million will guarantee operations and the company’s solidity in the Spanish residential market.