Proportunity secured 150 million dollars in funding on October 20th. The investment is a mix of 7 million dollars in equity plus 143 million dollars in debt.
VentureFriends and Kibo Ventures headed the series with other current backers. Proportunity plans to utilize these finances to expand its workforce and boost the maximum loan amount per property from 90,000 euros to 150,000 euros.
Headquartered in London, Proportunity claims to offer homebuyers a property purchase owner financing, identical to the UK administration's "Help to Buy" program.
But, the offer that the company provides is applicable for any residence, not just the new constructions. It enables individuals to purchase homes with just a 5% down payment, lowering the amount of money they need to save. The Proportunity loan amount, worth up to 150,000 euros or 25 percent of the home's value, is in addition to the highest credit customers can acquire from a traditional lender. They can potentially take up to sixfold their earnings with the equity loan and a credit of up to 4.5x their earnings.
This is possible, thanks to the company's machine learning algorithms, which help find fair-value properties in high-growth locations, reducing risk and eliminating the need for a significant investment.
Approximately 85% of tenants in the United Kingdom aspire to own a property but cannot do so due to high deposit needs and constant house price inflation.
Returns on Proportunity-selected homes are 50 percent higher every year than the housing price index, demonstrating achievement. FHBs can also receive the residences they want because their need for more cheap housing in elevated locations corresponds to high-growth areas plus estates.
In the United Kingdom, there seems to be a difference of 100,000-200,000 euros between what purchasers need and how much they can spend. This is owing to creditors' maximum loan-to-income ratio of 4.5x and hefty security conditions.
When one adds in rising housing costs and the necessity for an additional room in the current "work from home" atmosphere, it's clear that purchasers are losing the fight. Proportunity tackles this problem by financing up to £150,000 over and above the mortgage, filling the gap, and allowing purchasers to finance whatever they desire, whether it's a spare bedroom, a yard, or the opportunity to live in a decent area. With this additional funding, they will assist thousands of additional people in getting on the property ladder.
VentureFriends's associate, George Dimopoulos, stated that he could see a solution that can effectively touch countless First Home Buyers' lives in Proportunity.
Kibo Ventures's Javier Torremocha commented that his company is highly pleased with the concept and operational expertise of the Vadim - Stefan team. Proportunity is located at the exciting crossroads of proptech and finance, and it adds to good social impact by helping first-time home purchasers to purchase their ideal residences.
Anthemis's Ruth Foxe Blader also remarked that Anthemis is excited to keep sponsoring Proportunity in its quest to help FHBs to achieve excellent properties. Despite Covid shutdowns and economic risk difficulties, this exceptional company has rapidly expanded on several fronts, said Ruth.
Proportunity has already assisted customers in purchasing homes valued at more than 65 euro million.