In a previous post, in which we explained what is real estate crowdfunding and how it works, we also presented the periodic table of the 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
The real estate investments through crowdfunding are regulated by the 5 / 2015 Law on Business Financing Promotion, 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 Commission of the Market of Valore (CNMV). In September, 2018 published its first project, currently it carries 6 projects financed with 5 M from € 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 based in Valencia, it is a real estate investment portal that records all contributions through Investor Partners, a participatory financing platform registered with the CNMV. Accept investments from € 50.
Brickstarter: Founded in 2017 based 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, has its headquarters in Madrid, has attended 5 financing rounds for a total of $ 4.5 M, 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 specialized in Real Estate Crowdfunding.
Privalore: Headquarters in Barcelona, it operates from 2014. It supports investments from 1000 €, they offer their own investment products. The investment term depends on each project usually they are 8 months: 2 of work and 6 of sale.
Propcrowd: Headquarters in Barcelona founded in 2017, the Crowdfunding investment process, is carried out through the Socilen participatory financing platform 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 rounds of financing for a total of 4.5 M €.
Your real estate crowdfunding: Founded in 2016 based in Barcelona, the crowdfunding platform supports investments from € 5000
Urbanitae: Founded in 2017 based in Madrid, it has attended a round of financing for a total of € 1 M, the minimum investment varies according to the project, but it will usually be € 500.
Real estate crowdfunding in EUROPE
Real estate crowdfunding was later implemented in Europe than in the US or South America, currently the country with more projects and implementation of this real estate investment model is 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 of participatory financing platforms, so that companies dedicated to the sector can act within the European single market , since certain countries of the European Union like Great Britain, France Austria and Spain do exist that there is a specific regulation, but different in each one of them.
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 of 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 rounds of financing 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: Part of Rockets Holding, which operates various Crowdfunding platforms, specializes in real estate investment projects in Germany and Austria with investment stakes starting at € 250.
Immofunding: Financial technology company established in Vienna focused exclusively on the real estate industry. Investments in Crowdfunding from € 250.
Crowdfunding of real estate in recent years has begun to gain ground, there is no specific regulation for platforms in particular or for Crowdfunding in general, partly because it is a relatively new technique in the country.
Brickshare: Platform founded in 2015 with headquarters in Copenhagen, has attended two rounds of financing for a total value of 10 M DKK. He has carried out Crowdfunding projects worth 60 M from DKK. It is possible to 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 scope 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 a code of conduct for all Crowdfunding platforms with the participants in the sector.
Crowd Estate: It is one of the oldest Crowdfunding platforms in Europe, head office in the City of Tallinn, 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 in Estonia, Lithuania and Latvia. He has made loans worth 52 M €, plans to open platforms in Ireland, the United Kingdom and Spain, the 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, distinguishes between Crowdfunding investment advisors (CIP Conseil Investiment Participatif) and Crowdfunding investments intermediaries (IFPintermédiaire in participatory finance), both subject to control of the Financial Markets Authority (AMF) and the Prudential Control Authority (ACPR).
Anaxago Immon¡bilier: It has intervened in 120 investment operations and more than 108 M € investment since it was created in 2012 based in Paris. Each Real Estate Project presented to it is evaluated with 40 control points in order to guarantee the type of risk and to establish the level of foreseeable compensation to investors. The minimum investments are € 1000.
Lymo: Operates from 2013. Participation in projects is done by subscribing to bonds of the new company created for each project. Minimum investments of € 1000.
Upstone: Founded in 2015 and based in Paris As with Lymo, participation in investments is also made through the issuance of bonds from companies created to finance the real estate project. The minimum investment is € 100 and the average period of investments ranges from 6 months to several years.
It is the country of the European Union more developed and with more implementation of the Real Estate Crowdfunding, even though it has a specific regulation for Crowdfunding, it continuously studies the progress made by other countries in its 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 trade 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 deadlines for finalizing the investment are 4 years. Investments from 1000 $.
Crowd2let: Real Estate Investment Projects located in the North East of England, it has its headquarters in Newcastle upon Tyne. Minimum investments of 500 Pounds, with periods of maintenance of the investment from 3 to 5 years.
Crowdfunding place: Headquarters in Manchester, Minimum investments of 500 Pounds, there is no maximum amount of investment 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 or you must identify yourself as a high net worth investor, who has a total annual income of 100.000 Pounds or more or a net asset of more £ 250.000 Pounds, or be what they call Sophisticated Investor, which is an investor classification that indicates that someone who has enough capital and experience to participate in more advanced types of investment opportunities, For this platform to have this classification, consists of having been 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 from 2013 based in London, investment opportunities are available only to institutional investors with high net worth, sophisticated 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, has made investments for more than 14 M of Pounds. Minimum investments of 100 Pounds.
There are few specific real estate crowdfunding platforms, projects to invest in real estate are usually carried out in general Crowdfunding platforms, the legislation requires the platforms to carry out for each € 5000 of investment that a person wishes to make, a test to the investor to to help you determine if he has enough, experience and a solid financial position to make the specific investment you intend to make. It also establishes as an investment limit 10% of its investment assets, on Crowdfunding platforms.
Bouwandeel: Started the activity at 2014, in Amsterdam. Catalogs and performs 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 a specific legislation in the year 2012 regarding startups and Equity Crowdfunding companies. Until recently there were no real estate Crowdfunding platforms in Italy, only Loan Crowdfunding, however since June last year, the Spanish Crowdfunding platform Houser has started its activity in Italy by opening an office in Milan.
Walliance: He has participated in two rounds of financing obtaining 880.000 $, the minimum investment is € 500.
Crowdfunding in general and real estate in particular in Poland is experiencing rapid growth in recent years, there is no clear and specific regulation for Crowdfunding platforms, the government for fear of hindering innovative activities has been limited to observe and monitor 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 stay is 5 years for land and real estate development an average of 3 years and long term for rental.
The real estate Crowdfunding has also entered strongly in Switzerland since the year 2016, the volume invested that year was 128 CHF and in 2017 it reached the 374 M of CHF and the 2018 may have closed with twice the investment that was achieved in 2016 Currently, of the more 50 Crowdfunding platforms that exist 7 are from Real Estate.
Crowdli: Founded in 2016, launched its first investment project in 2017, it is located in the city of Frauenfeld, investments from 10.000 CHF established for a period of duration of 5 to 7 years.
Crowdhouse: Based in Zurich, it operates from 2015, the minimum amount to participate in investments is 100.000 CHF; they have managed since their creation more than 100 investment projects, after a rigorous selection process, since only 5% of the selected projects have considered that they comply with the requirements they have established to propose the projects to their clients.
FoxstoneGeneva headquarters, founded in 2016, promotes investment projects in Francophone Switzerland with a maximum investment duration of 5 years. The minimum investment is usually 50.000 CHF, although it also depends on the type of project.
My brick: It is the main platform for collective financing of real estate in the western part of Switzerland in the Region of Romandía, its headquarters are in Lausanne. The minimum investment is usually 20.000 CHF and there is a limitation that the same person cannot invest more than 20% of the total value of the property.
Real estate crowdfunding in EL MUNDO
At the state level there is no specific Crowdfunding regulation, however some provinces such as Ontario have established a certain regulatory framework. At 2017 the Canadian Securities Administrators (CSA), it launched a Sandbox regulatory initiative that focuses on innovative business models focused on technology and digital, such as collective financing portals.
Nexuscrowd: Canada's first real estate crowdfunding investment platform founded in Toronto-based 2014, has attended two rounds of financing for a total value of 16 M $. 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 crowdfunding platform for real estate from 2013, it 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 the Jumpstart Our Business Startups Act in 2012, aimed at providing financing to SMEs and startups, which had seen their economic activity decrease due to the financial crisis, in one of the sections of the law the regulations were introduced to be able to access financing through Crowdfunding, but limiting investments only to accredited investors, who are those who have incomes higher than 200.000 $ or 300.000 $ if they are married, a subsequent legislation In 2015 it has already allowed investments to the non-accredited, 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 $, has promoted investments for more than 460 M $, financing 290 real estate investment projects, the minimum investment accepted is 250.000 $. He has attended 3 financing rounds obtaining 12,9 M $.
Fundraise: It is a pioneer platform in investment through crowdfunding in real estate, since its foundation in Washington in 2012 has developed investment projects worth 2.500 M $. The minimum investment you accept is 500 $
PeerStreet: Headquarters in Los Angeles (California), founded in 2013 and specialized in short-term high-performance real estate loans, between 6 and 24 months, with minimum investment of 1.000 S, only in 2018 made investments worth 1000 M of $ . They have participated in 4 rounds of financing getting 50,6 M for $.
Prodigy Network: They are based in New York and offices in Miami, Bogotá, and Montevideo, have made investments for more than 600 M de S since it was created in 2003 by Rodrigo Niño, 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, they plan to expand to the main metropolitan cities of the United States. The minimum investments are 25.000 $ for accredited US investors and 50.000 for international investors.
RealtyMogul: Headquarters in Los Angeles (California) since its creation in 2012 have financed investments worth 2 Billions of $ and have distributed a profit among their investors worth 100 MM $, the periods of investment in the properties vary from 3 to 7 years and investment amounts range from 15.000 to 50.000 $. 5 has closed rounds of financing for a total value of 45 M $.
RealtyShares: Based in San Francisco (California), founded in 2013, it has invested more than 870 millions of $ in 1160 projects. The minimum investment amount is 10.000 $ and has participated in 9 rounds of financing 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 to the National Banking and Securities Commission (CNBV), which will also establish a regulation secondary for the Fintech that are dedicated to Crowdfunding and also for electronic payment.
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, has developed 25 projects with more than 18 M Pesos of return 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 of 2018, the regulations on the 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 from 2015 with headquarters in the City of Buenos Aires. The investment on each project is made by dividing the value of the investment by 10, which is the number of investors of each project, so the minimum value of the investment is 10% of the value of the property
The Mobile Securities Commission (CVM), has published in 2017, the regulation to legalize Investment Crowdfunding, and which focuses on 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 called "collective investment-based financing"
The Electronic Participatory Investment Platforms are the legal name they have in Brazil and must be registered in the CVM legal entities.
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 about 1000 R $. So far, only two investment projects have been completed and a third party 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. He has developed 19 projects, with a total investment of 27 M of R $. The minimum investment is 1000 R $.
There is no regulation on Crowdfunding, the Central Bank of Chile has developed a study to regulate Participatory Financing Platforms
Besafe Investments: Headquarters in Santiago, Chile, has developed 55 projects since its foundation, the minimum investment is 100 UF.
Lares: Founded in Santiago, Chile, the average investment terms are between 18 and 36 months. The minimum investment of 500.000 Clp
Currently, only Real Estate Crowdfunding projects are being 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 begin to be developed.
Realty africa: Develops investment projects of Real Estate Crowdfunding in Sub-Saharan Africa, the minimum investment is 30.000 $ American, has headquarters 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, is part of the maximum Group of Companies, operating in the Real Estate sector from 1993. The minimum investment is 10.000 R, but it varies according to 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 have their headquarters 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 regulatory body of the stock market of India, 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 through Crowdfunding
Smartowner: Established from 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 to it are considered acceptable due to the great rigor with which they carry out the selection of the projects.
The Crowdfunding market in China is still underdeveloped compared to those in the US or Europe, and there is some regulatory uncertainty of this type of platform.
Duocaitou Established in Beijing in 2014, it has gone to two rounds of financing obtaining 10 M for $. In 2018 its turnover exceeded 3000 million Yuan.
In 2014, similar to what was done in the United States, Japan reformed its legislation to allow Crowdfunding, The House of Council of Japan drafted the Law on Financial and Exchange Instruments.
Crowd Realty: Based in Tokyo, it has gone to four rounds of investment for a total of 600 Millions of Yen. Their real estate investment projects are in Japan and Estonia.
It is the financial center of Asia and the few countries in Asia where 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 real estate investment in the countries indicated above. Only accept accredited investors.
After several years of deliberations and amendments in the Australian Senate, the new collective financing laws of Australia, which opened up collective financing for individual investors, were passed in 2017.
Brickx: It is a regulated Crowdfunding platform for retail investors in Australia that allows investors to access real estate assets and provides a secondary liquidity market within the platform, it is headquartered in Sydney. He has participated in 4 investment rounds for a total of 12,5 M of $ Australians. The minimum investment is 50 $ A.
Crowdfund Up: Launched in Subiaco (Perth) in 2013 as Australia's first real estate Crowdfunding platform, it is authorized by financial regulators and the Australian Securities and Investments Commission. The minimum investments are 1.000 $ (AUD).