Estate Baron, an Australian-based real estate equity crowdfunding company, has closed a $400,000 seed capital funding round that was led by Adrian Stone, founder of AngelCube. The company connects real estate developers with prospective retail investors based on the location, time-frame, developer, and expected returns. It also aims at lowering the barriers of entry into real estate investment industry by allowing people to invest as low as $2000 in exchange for an equity stake in project.
The company connects real estate developers with prospective retail investors based on the location, time-frame, developer, and expected returns.
Crowdfunding is gradually taking off in Australia as more Australian-based crowdfunding sites are launched, and is expected to significantly disrupt the country’s property financing industry. It will definitely change the way Australians acquire and finance property. In addition, it will allow more Australians to diversify their real estate investment portfolios and create wealth.
…crowdfunding is a necessary funding alternative for real estate projects in Australia
Following the Series A funding round, the company was valued at $2 million. It will use the raised money on marketing and technology development. Adrian Stone who led the funding round, expressed confidence in the company saying that crowdfunding is a necessary funding alternative for real estate projects in Australia.
Estate Baron is the first crowdfunding company in Australia to have a comprehensive Public Disclosure Statement and Retail Australian Financial Services License. This means that there are no limitations on the number of investors allowed to participate in each project or the minimum investment amount. The company launched in February this year and has already crowdfunded $1.2 million via the #platform, and has signed about 450 local investors.
There are several other crowdfunding platforms that have been launched in Australia, such as CrowdFundUp. Estate Baron still stands out because it is the only platform that focuses on retail investors while others are only limited to wholesale investors. The company is dedicated to ensure transparency and due diligence of all projects offered to investors. Benni Aroni, a prominent real estate developer, has also invested in the company, and he will be personally scrutinizing projects before being listed on the platform.
Photo credits: micm.com.au