PRODUCT(S) AND/OR SERVICE(S)
Crowdfunding valuable real estate; quality buildings & prime locations. Investors gain shares &/or cashflow. Developers/owners gain access to funds.
Fundacate’s investors will own a share of a business charging fees to crowdfund premium developments and property purchases that can currently pay up to 20+% interest rates for post-bank funding. Fundacate’s founders are Internet pioneers who disrupted newspaper classified advertising in Australia. The real estate advertising systems they implemented are still widely used. Their aim is to now disrupt property finance.
As little as £500 can be invested. This can assist investors to spread portfolios and/or gain access to normally more expensive locations. Project owners have the opportunity to gain funds with certainty and less complexity. Each property is held in a Special Purpose Vehicle (SPV) legal entity. The various parties share in the ownership of the property & any rental income and sale proceeds when the property is sold.
We believe Fundacate’s founders’ experience provides great scope to span the UK and Australian markets asap.
– Disrupting Investment In Property Development –
Like the leading US Realcrowd group, who claim US$1B crowdfunding transactions in 2014, Fundacate aims to open-up the deal stream between investors and property owners and developers.
– gain easier direct investment access compared to traditional property investment funds and stock exchange entities
– invest with low amounts in secured projects
– gain transparent information on projects
– avoid traditional complex investment paperwork (while maintaining legal ownership).
– save time & money gaining funds
– save time & money selling syndicated-type assets
– gain another & less variable funding option
– gain promotional support from their “crowd” of investor owners.
For Banks & REIT’s:
– Fundacate is less expensive
– Fundacate provides competition for clients
– Fundacate’s £500 min investment undercuts traditional options.
Fundacate aims to provide clear information on operations, structures and financials to enable confident investment decisions as quickly as possible. Information originates from official valuations, financial projections, town planning, location profiles, developer credentials, etc.
Fundacate intends to decrease risk to investors in its platform by having no role in any investment other than bringing the parties together.
More Attractive Fees:
To compete with banks and REIT’s, Fundacate’s simple model is designed to ensure successful project funds directly participate in existing properties or projects. And ongoing fees for investment management are removed. There are also no “Exit” success-based fees etc on sale or lettings that can traditionally add barriers to investment.
Fundacate ensures a simple legal structure for each project to enable investors funds to be exchanged for units/shares proportionate to their investment in the project.
SUBSTANTIAL ACCOMPLISHMENTS TO DATE
– Noted Web Industry Founders –
The founders are Internet pioneers who disrupted the “rivers of gold” of newspapers real estate classified advertising. They aggregated leading agents, developers and industry groups to better service vendors, landlords, buyers and lessees. They are intent on disrupting the UK finance industry & extending into the valuable Australian market asap.
– Website –
A working Fundacate.com website and technology has been established and is in ongoing development.
– Legals –
Legal and structural input has been sourced from quality practitioners, including FCA compliance processes.
– Developer Prospecting –
Discussions have been held with developers of quality retail/commercial/residential and residential multi-unit developments.
– Accountancy Services –
Respected accountancy practices have been consulted for roles in compliance management, project accountancy and investor trust management.
SEIS Assurance application in progress.
USE OF PROCEEDS
– Overview –
Operations include limited technical costs, efficient marketing and business development and customer service base that does not require participation in project enquiries.
– Marketing/Business Development –
The business focus is to gain a regular stream of funded projects. This requires various marketing approaches to build investor and project owner awareness and engagement as widely as possible.
– Legals –
There are ongoing legal, compliance and corporate advice costs. This includes fees to initially act as an Associate Representative of a current FCA authorised provider pending full FCA authorisation.
– Technical & Admin –
Outsourcing some technical development and accountancy roles is planned for cost efficiencies.
The company will require modest office space on successful achievement of funding.