London-based help-to-buy FinTech firm Proportunity has raised £2m in seed investment.
The new cash will help the firm, which offers home equity loans for first-time buyer deposits, to bolster its platform and grow its network of partnerships with real estate agencies and mortgage brokers.
The funding comes from Anthemis, alongside Axel Springer Digital Ventures, and brings the total raised to $4.3m.
Founded by CEO Vadim Toader in 2016 and FCA authorised in 2018, the firm now has over 5,000.
The FinTech typically lends 15 per cent of a property’s value, but also uses predictive AI technology and its analytics platform to indentify areas of good investment by acting as a digital buying agent.
“Home ownership has become a major social divide between those who have benefited from capital growth and those who have not,” said Toader.
“By broadening equity loans to all housing stock and by using AI to offer insights to select the perfect investment, we want to have a positive social impact that also supports both estate agents and traditional mortgage lenders.
“With the Government’s Help to Buy scheme destined to end in a few years, and further second steppers restrictions starting 2021, the UK housing market is in dire need of a private sector alternative that’s tried, tested and ready to help the next generation of homeowners.”
Ruth Foxe Blader, managing director at Anthemis, added: “Getting on the housing ladder is a critical consideration for the majority of people and that’s why we’re thrilled to support Proportunity.
“Equally, there’s an excellent opportunity to use AI and analytics to assist buyers and better inform the market. Proportunity’s analytics platform plays a crucial role in supporting investments and in bringing a greater level of transparency to a market that can often be confusing and daunting to first-time buyers.”