In a previous post, in which we explained what is real estate crowdfunding and how it works, we also exposed the periodic table of real estate Crowdfunding platforms in the world where to invest money and we analyzed in particular those that were operating in Spain and the legislation by which they are governed.
In this new post we make, on the "table" indicated above, a selection of the best crowdfunding platforms both in Spain and in the rest of the world and their main characteristics, as well as a brief reference to the legislation of each of the countries in which they operate.
Real estate crowdfunding in SPAIN
Real estate investments through crowdfunding are regulated by Law 5/2015 on the Promotion of Business Financing, which establishes a series of protection measures for both professional and non-professional investors.
Icrowdhouse: Founded in 2016 with headquarters in Barcelona, it is a Participatory Financing Platform authorized by the National Securities Market Commission (CNMV). In September 2018, it published its first project, currently it has 6 projects financed with € 5 M raised, 243 registered users and 50 investors (offline-online). It admits investments from € 50 (depending on the type of project).
Brickbro: Founded in 2018 with headquarters in Barcelona, they operate through the Stockcrowd Participatory Financing Platform authorized by the (CNMV). The minimum amount to invest varies from 50 to 300 euros per project, depending on the needs for each operation.
Bricks and People: Founded in 2017 with headquarters in Valencia, it is a real estate investment portal that records all contributions through Socios Inversores, a participatory financing platform registered with the CNMV. Accept investments from € 50.
Brickstarter: Founded in 2017 with headquarters in Valencia, it is an investment platform specialized in tourist apartments, admits investments from € 50
Civislend: Headquarters in Madrid founded in 2016, Real Estate Investment Platform authorized by the CNMV and the Bank of Spain in all its forms that include securities, participations and loans. The minimum amount to invest depends on each property, in some projects it can be up to € 100.
Debar GI: Real Estate Crowdfunding Platform based in Madrid, admits investments from € 5000
Ethic Investors:Founded in 2017 with headquarters in Barcelona, they work with the Stockcrowd Participatory Financing Platform, authorized by the CNMV.
Housers: Founded in 2015, it is headquartered in Madrid, has attended 5 rounds of financing for a total of $ 4.5 million, has offices in Madrid, Barcelona, Valencia, Milan and Lisbon. It has 100.948 registered users and an accumulated investment of € 77.299.747.The minimum amount to invest is € 50.
Housgage: Headquarters in Madrid, admits investments from € 50
My funding: Based in Barcelona, it belongs to the Forcadell group, all investment opportunities are offered through the Stockcrowd IN Participatory Financing Platform authorized by CNMV and pending registration.
Inmocrowd: Offers investment opportunities from different participatory financing platforms specialists in Real Estate Crowdfunding.
Privalore: Headquarters in Barcelona, it has been in operation since 2014. It admits investments from € 1000, they offer their own investment products. The investment period depends on each project, usually they are 8 months: 2 for work and 6 for sale.
Propcrowd: Headquarters in Barcelona founded in 2017, the investment process in Crowdfunding is carried out through the participatory financing platform Socilen accredited by the CNMV. It admits participations from € 50.
Stockcrowd: Founded in 2015 with headquarters in Barcelona. Participatory Financing Platform authorized by CNMV, has developed 2 financing rounds for a total of € 4.5 million.
Your real estate crowdfunding: Founded in 2016 with headquarters in Barcelona, the crowdfunding platform admits investments from € 5000
Urbanitae: Founded in 2017 with headquarters in Madrid, it has attended a financing round for a total of € 1 M, the minimum investment varies depending on the project, but it will generally be € 500.
Real estate crowdfunding in EUROPE
Real estate Crowdfunding was implemented later in Europe than in the US or South America, currently the country with the most projects and implementation of this real estate investment model is Great Britain, followed by France and Germany.
There is still no regulation in the EU on Real Estate Crowdfunding, the European Commission has launched a legislative proposal in order to establish a common framework for participatory financing platforms, so that companies dedicated to the sector can act within the European single market Since certain countries of the European Union such as Great Britain, France, Austria and Spain do have specific regulations, but different in each of them.
- GREAT BRITAIN
- UNITED STATES
In Germany there is no specific law on real estate Crowdfunding platforms, since it considers that these companies do not obtain capital from investors for their own business and therefore they are considered mere intermediaries and therefore are not subject to the control of the Federal Authority financial supervision, although there is a Retail Investor Protection Law, which limits their participation in investments of this type to a maximum of € 10.000.
Ifunded: Starts its activities in Berlin 2016, has attended two financing rounds worth € 4M, allows investments from € 500.
Rea Capital: Since its foundation at the end of 2016, it has carried out 5 Real Estate Crowdfunding projects for an investment value of € 3.800.000, it is based in Hamburg. Investments can be made with a minimum of € 250 and with increments of the same amount, the maximum investment allowed in the same project is € 10.000.
Crowdfunding is widely regulated, in accordance with the provisions of the Capital Market Law, the real estate Crowdfunding sector has become very popular in recent years although there are few platforms. The threshold for non-accredited investors is € 5.000 per year for each project.
Home rocket: It is part of Rockets Holding, which operates various Crowdfunding platforms, specializing in real estate investment projects in Germany and Austria with investment shares starting at € 250.
Immofunding: Vienna-based fintech company focused exclusively on the real estate industry. Investments in Crowdfunding from € 250.
Real estate Crowdfunding in recent years has begun to gain ground, there is no specific regulation for platforms in particular or for Crowdfunding in general, due in part to the fact that it is a relatively new technique in the country.
Brickshare: Platform founded in 2015 based in Copenhagen, has attended two rounds of financing for a total value of 10 M DKK. She has carried out Crowdfunding projects worth 60 M DKK. You can invest from 10.000 DKK, however as a consequence of the limitations in the maximum number of investors in a company, it may be necessary in some projects to change the minimum investment to guarantee the achievement of the financing objective.
The Estonian financial supervisory authority has drafted a bill to regulate Crowdfunding platforms. Finance Estonia, a public-private entity that brings together companies in the financial sector, has created together with the sector participants a code of conduct for all Crowdfunding platforms.
Crowd Estate: It is one of the oldest Crowdfunding platforms in Europe, headquartered in the City of Tallinn, it has carried out 130 projects with the participation of more than 26.000 investors. The minimum investments are € 100.
Estateguru: Debt financing platform, loans are backed by a mortgage, real estate projects are located in Estonia, Lithuania and Latvia. It has made loans worth € 52 million, plans to open platforms in Ireland, the United Kingdom and Spain, its headquarters are in the city of Tallinn. The minimum investment is € 50.
It has regulation of the Crowdfunding sector since 2014 with modifications made at the end of 2016, it distinguishes between Crowdfunding investment advisers (CIP Conseil Investiment Participatif) and intermediaries in Crowdfunding investments (IFPintermédiaire en financement participatif), both subject to control of the Financial Markets Authority (AMF) and the Prudential Control Authority (ACPR).
Anaxago Immon¡bilier: It has participated in 120 investment operations and more than € 108 million in investment since it was created in 2012 with headquarters in Paris. Each real estate project that is presented to you is evaluated with 40 control points in order to guarantee the type of risk and to establish the level of foreseeable compensation for investors. The minimum investments are € 1000.
Lymo: It has been in operation since 2013. Participation in projects is done by subscribing to bonds of the new company that is created for each project. Minimum investments of € 1000.
Upstone: Founded in 2015 and based in Paris As with Lymo, participation in investments is also carried out through the issuance of bonds from companies that are created to finance the real estate project. The minimum investment is € 100 and the average investment period ranges from 6 months to several years.
It is the most developed country of the European Union and with the most implementation of Real Estate Crowdfunding, even though it has a specific regulation for Crowdfunding, it continuously studies the progress made by other countries in their legislation, in order to study its possible applications, and on all aimed at ensuring adequate levels of investor protection. The body that regulates the activities is the UK Financial Conduct Authority (FCA).
Bricksave: It is the commercial name of Diversified Real Estate Asset Management Ltd, founded in 2015. Headquarters in London and office in Buenos Aires for the Argentine market, the maximum terms to complete the investment are 4 years. Investments from $ 1000.
Crowd2let: Real Estate Investment Projects located in the North East of England, is based in Newcastle-upon-Tyne. Minimum investments of £ 500, with investment maintenance periods of 3 to 5 years.
Crowdfunding place: Headquarters in Manchester, Minimum investments of £ 500, there is no maximum investment amount for most offers, however they reserve the right to establish a minimum and / or maximum investment for certain projects. They do not accept investors from the US and Japan.
Crowdlords: Founded in 2014 and based in London to access your investments, either you must identify yourself as a high net worth investor, with a total annual income of £ 100.000 or more or a net asset of more than £ 250.000, or be what they call a Sophisticated Investor, which is an investor rating that indicates someone who has enough capital and experience to participate in more advanced types of investment opportunities, For this platform, having this classification consists of having been the director of a company with an annual turnover of 1 million pounds or more. The minimum investment is 1000 Pounds.
Property Crowd: The Platform is operated by Global Alternatives since 2013 based in London, investment opportunities are available only to high net worth, sophisticated institutional investors and other professionals. Minimum investment of 100 Pounds.
Property Moose: It is one of the pioneering platforms in real estate Crowdfunding in Europe, founded in 2013 also based in London, it has made investments of more than 14 M Pounds. Minimum investments of 100 Pounds.
There are few specific platforms for real estate Crowdfunding, projects to invest in real estate are usually carried out on general Crowdfunding platforms, the legislation requires platforms to carry out for every € 5000 of investment that a person wishes to make, a test to the investor to help you determine if he has enough, experience and a solid financial position to make the specific investment he intends to make. It also establishes an investment limit of 10% of its investment assets, in Crowdfunding platforms.
Bouwandeel: It started the activity in 2014, in Amsterdam. It catalogs and carries out an evaluation of investment projects according to five categories from A to E, depending on the type of risk. Investments from € 250
It was one of the first countries to introduce specific legislation in 2012 with respect to startups and Equity Crowdfunding companies. Until recently there were no real estate Crowdfunding platforms in Italy, only loan Crowdfunding, however since June of last year, the Spanish Crowdfunding platform Houser has started its activity in Italy by opening an office in Milan.
Walliance: You have participated in two rounds of financing obtaining $ 880.000, the minimum investment is € 500.
Crowdfunding in general and real estate in Poland in particular has experienced rapid growth in recent years, there is no clear and specific regulation for Crowdfunding platforms, the government for fear of hindering innovative activities has limited itself to observing and monitoring the platform activity
ShareVestors: Crowdfunding platform established in 2015 in the city of Olsztyn, operates in land investment projects, for housing development and for collective investment of real estate and commercial premises for rent, the minimum investment is 1000 PLN, the minimum permanence is 5 years for land and for real estate development an average of 3 years and long-term for rental.
Real estate crowdfunding has also entered Switzerland strongly since 2016, the volume invested that year was 128 CHF and in 2017 it reached 374 M CHF and 2018 may have closed with double the investment that was achieved in 2016 Currently of the more than 50 Crowdfunding platforms that exist, 7 are from Real Estate.
Crowdli: Founded in 2016, it launched its first investment project in 2017, it is located in the city of Frauenfeld, investments from CHF 10.000 established for a duration of 5 to 7 years.
Crowdhouse: Based in Zurich, operating since 2015, the minimum amount to participate in investments is 100.000 CHF; They have managed more than 100 investment projects since their creation, after a rigorous selection process, since only 5% of the selected projects have considered that they meet the requirements they have established to propose the projects to their clients.
FoxstoneHeadquartered in Geneva, founded in 2016, it promotes investment projects in French-speaking Switzerland with a maximum investment duration of 5 years. The minimum investment is usually CHF 50.000, although it also depends on the type of project.
My brick: It is the main real estate crowdfunding platform in Western Switzerland in the Romandie Region, the headquarters is in Lausanne. The minimum investment is usually CHF 20.000 and there is a limitation that one person cannot invest more than 20% of the total value of the property.
Real estate crowdfunding in THE WORLD
At the state level there is no specific regulation of Crowdfunding, however some provinces such as Ontario have established a certain regulatory framework. In 2017 the Canadian Securities Administrators (CSA) launched a regulatory Sandbox initiative that focuses on innovative business models focused on technology and digital, such as crowdfunding portals.
Nexuscrowd: Canada's first real estate Crowdfunding investment platform founded in 2014 based in Toronto, has attended two rounds of financing for a total value of $ 16 million. In order to participate as an investor, it is required to be an accredited investor as established by Canadian law, the minimum investment they accept is $ 150.000.
Open avenue: It operates as a real estate Crowdfunding platform since 2013, only accepts investors accredited with the criteria of the Ontario Securities Commission. The minimum investment is $ 10.000.
It is the country where the concept of Real Estate Crowdfunding was born, by publishing in 2012 the Jumpstart Our Business Startups Act, aimed at facilitating financing to SMEs and startups, which had seen their economic activity decrease due to the financial crisis, in one From the sections of the law, regulations were introduced to access financing through Crowdfunding, but limiting investments only to accredited investors, which are those who have incomes greater than $ 200.000 or $ 300.000 if they are married, subsequent legislation in 2015 it already allowed non-accredited people to make investments, but limiting their investment according to annual income.
Crowdstreet: Headquarters in Portland (Oregon) created in 2013.The minimum investment to invest in Real Estate Crowdfunding is $ 25.000, it has promoted investments for more than $ 460 million, financing 290 real estate investment projects, the minimum investment it accepts is $ 250.000. It has attended 3 rounds of financing obtaining 12,9 M $.
Fundraise: It is a pioneer platform in investing through Crowdfunding in real estate, since its foundation in Washington in 2012 it has developed investment projects worth $ 2.500 million. The minimum investment you accept is $ 500
PeerStreet: Headquarters in Los Angeles (California), founded in 2013 and specialized in high-yield short-term real estate loans, between 6 and 24 months, with minimum investment of 1.000 S, only in 2018 they made investments worth 1000 M $ . They have participated in 4 rounds of financing, obtaining $ 50,6 M.
Prodigy Network: They are headquartered in New York and have offices in Miami, Bogotá, and Montevideo, they have invested over 600 M of S since it was created in 2003 by Rodrigo Niño, a pioneer in the implementation of Crowdfunding in the United States. At the moment they are focused only on real estate investments in New York City, it plans to expand to the main metropolitan cities of the United States. Minimum investments are $ 25.000 for US accredited investors and $ 50.000 for international investors.
RealtyMogul: Headquarters in Los Angeles (California) since its creation in 2012, they have financed investments worth $ 2 billion and have distributed a profit among their investors worth $ 100 million, the investment periods in the properties vary from 3 to 7 years and investment amounts range from $ 15.000 to $ 50.000. It has closed 5 rounds of financing for a total value of $ 45 million.
RealtyShares: Based in San Francisco (California), founded in 2013, it has invested more than $ 870 million in 1160 projects. The minimum investment amount is $ 10.000 and it has participated in 9 financing rounds for a total of 105 M.
Until mid-2018, there was no regulation of Crowdfunding platforms in Mexico, therefore, previously the main platforms of the sector joined together to establish a code of good practices to protect the interests of all parties involved by creating AFICO (Association of Collective Funding Platforms).
Later in the first quarter of last year, the Fintech Law was enacted, to regulate Financial investment institutions and protect investors, whose compliance supervision falls on the National Banking and Securities Commission (CNBV), which will also establish a regulation secondary for Fintech companies that are dedicated to Crowdfunding and also for electronic payment companies.
Briq.mx: Established in Mexico City in 2015, it has made investments worth 184 million Mexican pesos in 84 real estate projects, with a return of 18 million pesos. The minimum investment varies depending on the type of project and from 5.000 pesos.
Expansive: Real estate Crowdfunding and Crowdlending platform founded in 2015, with headquarters in Mexico City and minimum investments of 5.000 Mexican Pesos.
Invrespot: It has made investments since 2015 in various areas of Mexico City, from 50.000 to 200.000 pesos, it has developed 25 projects with more than 18 million pesos of yield delivered to investors.
M2Crowd: Like the rest of the investment platforms of Mexicanas, it is headquartered in Mexico City, founded in 2017, it has made investments throughout the country for more than 4500 M Pesos. The minimum investments that vary depending on the project are from a minimum of 2.000 pesos. It is also a crowdlending platform for financing real estate projects.
Pm2: This Mexican platform carries out a variant of real estate Crowdfunding, since the investment is made per m2 of construction projects with the minimum investment of 1 m2 and whose value of the m2 varies depending on the type of asset and the area in which it develops.
In April 2018, the regulations on Collective Financing Platforms were published, in which the rights and obligations of the participants were established and determining that they are subject to the regulation and supervision of the National Securities Commission.
Crowdium: Founded at the end of 2015 in the City of Buenos Aires, it has already developed 8 projects. Minimum investment of 20.000 pesos with an average investment period of 3 to 4 years.
Argentine real estate crowdfunding: Operates since 2015 with headquarters in the City of Buenos Aires. The investment on each project is made by dividing the investment value by 10, which is the number of investors in each project, so the minimum investment value is 10% of the property value
The Mobile Securities Commission (CVM), has published in 2017, the regulation to legalize Investment Crowdfunding, and which focuses on the cases in which a project is presented through a website to a large number of people as a investment opportunity that generates the right of participation, association or remuneration in what is known as “collective financing based on investment”
The Electronic Platforms for Participative Investment are the legal denomination that they have in Brazil and that legal entities must be registered with the CVM.
Glebba: Founded in 2017 based in Sao Paulo, its real estate projects are usually condominiums, the minimum level of investment depends on the type of project, it is usually over 1000 R $. So far, only two investment projects have been completed and a third is open.
Urbe.me: It started its activities as a Crowdfunding platform in Porto Alegre in 2015 and in 2018 it was registered by the CNMV as a collective investment platform. It has developed 19 projects, with a total investment of R $ 27 million. The minimum investment is 1000 R $.
There is no regulation on Crowdfunding, the Central Bank of Chile has developed a study to regulate the Participatory Financing Platforms
Besafe Investments: Headquarters in Santiago de Chile, it has developed 55 projects since its foundation, the minimum investment is 100 UF.
Lares: Founded in Santiago de Chile, the average investment terms are between 18 and 36 months. The minimum investment of 500.000 Clp
Currently, Real Estate Crowdfunding projects are only carried out in South Africa, where legislation on this sector is being developed.
In Morocco, the Crowdfunding regulatory framework is under study, so it is foreseeable that once the Law on the so-called Collaborative Financing Platforms is enacted, the first Real Estate Crowdfunding projects will begin to be developed.
Realty africa: Develops Real Estate Crowdfunding investment projects in Sub-Saharan Africa, the minimum investment is US $ 30.000, has a head office in Johannesburg (South Africa), in Gabarone (Botswana), in Harare (Zimbabwe) and in The Hague (Holland).
Real Estate Crowdfunding Dot CoZa: Real Estate Crowdfunding platform of the South African company Maximum One property Group, based in Johannesburg, part of the Maximum Group of Companies, operating in the Real Estate sector since 1993. The minimum investment is 10.000 R, but varies depending on of each project.
In the Philippines, Crowdfunding platforms are directed and managed in a cooperative regime, which is the legal structure allowed by the country's legislation.
Upbuilds: They are headquartered in the city of Nueva Écija (Luzon) and an office in Doha (Qatar), the minimum investment depends on each project from 10.000 PhP and there is a maximum investment that cannot reach more than 10% of the total capital of the project.
There is no specific regulatory framework for the sector. The regulator of the Indian stock market, after studying the regulations of other countries, has proposed the limitation of participation only to those considered accredited investors, who must have an investment advisor, and not invest more than 60.0000 Rs by means of Crowdfunding.
Smartowner: Established since 2012 in the City of Bangalore, it has offices in the United States, United Kingdom, Canada, Bahrain, Singapore and Australia. It has been considered by the Financial Times as the fastest growing Fintech firm in South Asia. Only about 1% of the projects that arrive are considered acceptable due to the great rigor with which they carry out the selection of projects.
The Crowdfunding market in China is still underdeveloped compared to those in the US or Europe, and there is some regulatory uncertainty for this type of platform.
Duocaitou Established in Beijing in 2014, it has attended two rounds of financing, raising $ 10M. In 2018, its turnover exceeded 3000 billion Yuan.
In 2014, similarly to what was done in the United States, Japan amended its legislation to allow Crowdfunding, The House of Counciliors of Japan drafted the Law on Financial and Exchange Instruments.
Crowd Realty: Based in Tokyo, it has attended four investment rounds for a total of 600 Million Yen. His real estate investment projects are in Japan and Estonia.
It is the financial center of Asia and of the few countries in Asia in which there is a certain regulation of real estate Crowdfunding
InvestaCrowd: Founded in 2016, it is licensed and regulated by the Monetary Authority of Singapore, it does not carry out its investment projects in its country but in Australia, the United States and the United Kingdom, since there are a large number of Asian investors and above all Chinese interested in the real estate investment in the countries indicated above. Only accepts accredited investors.
After several years of deliberations and amendments in the Australian Senate, Australia's new Crowdfunding laws were passed in 2017, opening up crowdfunding to individual investors.
Brickx: It is a regulated Crowdfunding platform for retail investors in Australia that allows investors to access real estate assets and provides a secondary market for liquidity within the platform, it is headquartered in Sydney. He has participated in 4 investment rounds for a total of 12,5 M Australian $. The minimum investment is $ 50.
Crowdfund Up: Launched in Subiaco (Perth) in 2013 as Australia's first Real Estate Crowdfunding platform, it is licensed by financial regulators and the Australian Securities and Investments Commission. The minimum investments are $ 1.000 (AUD).