Glossary of Property Investment Terms

There are a lot of terms unique to the investment world that will be new to those just embarking on building a property portfolio. That’s why we thought it would be very useful for you to have a thorough Glossary of Property Investment Terms to help you to thoroughly understand some of the finer points of investing. We hope you find it useful!

Glossary of Property Investment Terms | The House Crowd

A Shares 

A class of shares which have specific rights attached to them, as set out in a company’s articles of association.

Angel Investors

Investors who provide investment and other support to early-stage businesses. Traditionally angels are wealthy individuals who have a significant amount of entrepreneurial, industry or investment experience.

Angel Network (or Angel Syndicate)

A group of angel investors that pool together money and other resources to invest in, and provide support to, early-stage businesses.

Annualised Return

Average return each year over the minimum term, based on the total of rental income and estimated capital growth.

Find out more about Annualised Returns here.

Articles of Association

A company document that sets out its management and administrative structure.

The articles dictate the internal affairs of the company such as director and shareholder rights, the issue and transfer of shares, and the organisation of meetings.

Asset Class

A class of economic property that has similar characteristics. Listed shares, government bonds and real estate are all asset classes.

Glossary of Property Investment Terms | The House Crowd

B Shares

A class of shares which have specific rights attached to them, as set out in the company’s articles of association.

Below Market Value (BMV)

Properties are sometimes sold at below the market value, meaning they are offered at lower prices than comparable properties.

Beneficial Shareholder / Owner

An investor who owns the economic value and other shareholder benefits attached to shares, such as dividends and tax reliefs, but the registered title to their shares is held with another person or entity often for administrative convenience.

Bridging Finance

Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt coming due – primarily for property transactions – and the main line of credit becoming available. Alternatively, they can act as a short-term loan in pressing circumstances.

Glossary of Property Investment Terms | The House Crowd

Capital Employed  

The sum of shareholders’ equity and debt liabilities; can be simplified as Total Assets – Current Liabilities.

Capital Growth

The increase in value of an asset or investment over time, measured on the basis of the current value of the asset or investment, in relation to the amount originally invested in it.

Convertible Equity

An equity investment where money is invested in a company in exchange for shares to be issued at a later date. The share issue is generally triggered by the company raising finance from other investors. In return for investing early, the convertible equity investors receive a discount on the price of the shares issued to the other investors.

Convertible Note

A debt investment where money is invested in a company with the expectation that the debt will “convert” into shares issued at a later date. The share issue is generally triggered by the company raising finance from other investors. Before the conversion, the investor is paid interest.


The funding of projects or ventures by raising money from a large number of people, usually online. The three main types of crowdfunding are equity, debt and rewards/donations.

Glossary of Property Investment Terms | The House Crowd

Damp Proof Course (DPC)

A barrier through the structure by capillary action such as through a phenomenon known as rising damp.


Money owed by one person/company to another. The borrower has to repay the money at a later date and generally also has to pay interest.


A reduction in the ownership percentage of a share in a company caused by the issue of new shares.


An investment strategy that involves mixing the amount, values and kinds of investments within a portfolio to spread risk and minimise losses.


A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

Dividend Distribution

The distribution of a portion of a company’s profits to investors.

Drag-Along Right

A contractual obligation that allows majority shareholders to force minority shareholders to join in the sale of a company on the same terms, valuation and conditions of the majority shareholders.

Glossary of Property Investment Terms | The House Crowd

Enterprise Investment Scheme (EIS)

A UK tax scheme offering income tax and capital gains tax reliefs to qualifying private investors who invest in eligible businesses.


Shares or other securities that represent an ownership interest in a company.

Equity Crowdfunding

A type of crowdfunding that enables multiple investors to a buy shares, or other equity interests, in a company, usually through an online process.


An event when investors may be able to cash in and sell their shares, such as an initial public offering (IPO) or trade sale.

Glossary of Property Investment Terms | The House Crowd

FENSA Certificate

Documentary evidence that the installation work has been self-certified to comply with the Building Regulations

Financial Conduct Authority (FCA)

The financial services regulatory body in the UK, formerly called the Financial Services Authority (FSA).

Fully Diluted

All the shares of a company in issue, plus all shares which are the subject of options or other contractual rights to be issued in the future (regardless of whether the right has vested).


An investment opportunity that seeks to raise money to be invested across multiple businesses. Fund campaigns are commonly used to invest in businesses participating in accelerator programmes and competition winners.

Glossary of Property Investment Terms | The House Crowd

Gas Safety Certificate

By law, landlords must have all gas appliances serviced regularly, normally once a year, by a Gas Safe registered engineer.

Gross Development Value (GDV)

The estimated value that a property, or new development, would fetch on the open market if it were to be sold in the current economic climate.

Gross Rate of Return

The total rate of return on an investment before deduction of any fees or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter or year. It is often quoted as the rate of return on an investment in marketing materials.


The stage that a business is at when it has passed its ‘seed’ or initial stage and has established proof of concept and looking to grow.

Gross Yield

The yield on an investment before the deduction of taxes and expenses (such as management fees and maintenance costs). Gross yield is expressed in percentage terms. It is calculated as the annual return on an investment prior to taxes and expenses divided by the current price of the investment.

Glossary of Property Investment Terms | The House Crowd

High Net Worth Investor (HNWI)

A classification used by the financial services industry to denote an individual, or a family, with high net worth. If you earn more than £100,000 a year or have net assets of more than £250,000, you may qualify as a High Net Worth Investor.

HMO (House in Multiple Occupation)

A house occupied by more than two qualifying persons, being persons who are not all members of the same family. A “qualifying person” is a person whose only or principal place of residence is the HMO.

Glossary of Property Investment Terms | The House Crowd

Initial Public Offering (IPO)

The first time that a company’s shares are available for public purchase by means of a listing on a stock exchange. This process is also known as ’going public’ or ‘floating’.

Glossary of Property Investment Terms | The House Crowd

Know Your Client (KYC)

The regulatory process that financial services firms and certain other businesses must perform to verify the identity of their customers to help prevent against money laundering and other financial crimes.

Glossary of Property Investment Terms | The House Crowd

Loan to Value (LTV)

A term commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property. For instance, if someone borrows £130,000 to purchase a house worth £150,000, the LTV ratio is £130,000 to £150,000 or £130,000/£150,000, or 87%. The remaining 13% represent the lender’s ‘haircut’, adding up to 100% and being covered from the borrower’s equity. The higher the LTV ratio then the riskier the loan is for a lender.

More on Loan to Value here

Local Housing Authority (LHA)

The main provider of social housing (or housing authorities) for people who cannot afford to buy their own homes. Local authority housing is allocated according to eligibility and need. Rents are based on the household’s ability to pay.

Glossary of Property Investment Terms | The House Crowd

Net Profit

The actual profit after deducting expenses, such as management fees, letting fees, maintenance costs which are were not included in the calculation of gross profit, have been paid.

Net Yield

Net yield is everything after expenses. It takes into account all fees and expenses associated with owning a property. It is a far more accurate way of calculating actual yield. It is also much harder to calculate as most costs are variable.


A person or firm that holds assets, such as shares on behalf of another, enabling the nominee to handle complicated administrative matters.

Glossary of Property Investment Terms | The House Crowd

Open Market Value (OMV)

The realistic price that could be achieved for a property if marketed for sale.


A right granted which gives the receiver an option, but not an obligation, to buy (or sell) shares in a company, or other securities, at an agreed price within a certain time frame.

Ordinary Shares  

Shares which represent normal equity ownership in a company. Ordinary shares generally entitle the owner to vote at shareholder meetings, receive dividends, and receive distributions on the winding up of a company, but do not carry preferential treatment.

Glossary of Property Investment Terms | The House Crowd

Pre-Emption (Also called Anti-Dilution)

A contractual provision which requires the company to offer its shareholders the chance to purchase additional shares to maintain their percentage of equity in advance of further shares being issued.


A group of financial assets such as shares, property or bonds, held by one person or entity.

Portable Appliance Testing (PAT)

The name of a process by which electrical appliances are routinely checked for safety.


The period of time after an investment has been made in a company.

Preference Shares

A class of shares which have specific preferential rights attached to them, as set out in the company’s articles of association. Typically the preference will be a dividend paid in priority to other shareholders, or priority to distributions on the winding up of the company.

Professional Investor

A classification used by the financial services industry to denote an individual or family.

Property Yield  

A calculation to give an indication of annual returns based on the rental income against how much the property cost: Property Yield (%) = Rental Income/(Property purchase price + Refurbishment Budget).

Glossary of Property Investment Terms | The House Crowd

Registered Social Landlord (RSL)

Registered providers that own and manage social housing.

Return on Capital Employed (ROCE)

The return on capital employed is, considered by some, a better measurement than return on equity, because ROCE shows how well a company is using both its equity and debt to generate a return.

RICS Surveyor

Building surveyors, like all surveyors, inspect property or land. RICS (Royal Institute of Chartered Surveyors) is a professional body for chartered surveyors, which includes chartered building surveyors. RICS sets standards and guidance for surveyors and provides training and professional development opportunities for surveyors to comply with changing standards and legislation.


The potential for losing something of value. With equity investment the main risk to the investor is losing the money invested.

Glossary of Property Investment Terms | The House Crowd

Secondary Market

A market where investors purchase shares from other investors rather than from the company that has issued the shares directly.

Shareholder Agreement

An agreement between a company’s shareholders detailing certain rights and obligations of the shareholders.


An ownership interest in a company which entitles the shareholder to certain rights, for example a share of profits or dividend payments from the company. Shares are also referred to as “stock”.

Sharia Compliant

Investments that comply with Islamic law and principles, eg. ethical investments with no borrowing where investors share in the profits and losses.

Solicitors Regulatory Authority (SRA)

The regulatory body for solicitors in England and Wales.

Sophisticated Investor

A type of investor who is deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity. This category is for people who have invested in shares in more than one unlisted company (including via The House Crowd) in the last two years or have been a member of a business angel syndicate or network for at least six months including The House Crowd’s Investor group.

Special Purpose Vehicle (SPV)

A Company set up for a particular purpose. In the case of The House Crowd, SPV’s are set up for the purpose of purchasing/owning a property on behalf of the investors.

Subscription Agreement  

An agreement between a company and investors purchasing shares in the company. It sets out the terms of the share purchase and details certain rights and obligations of the company and the investors as shareholders.

Glossary of Property Investment Terms | The House Crowd

Tag-Along Rights

A contractual obligation which gives minority shareholders the right, but not the obligation, to join a transaction where shares are sold by majority shareholders, on the same terms, valuation and conditions of the majority shareholders.

Term Sheet  

A non-binding agreement addressing the basic terms and conditions under which an investment will be made in a business. A term sheet often serves as a template to develop more detailed legal investment documentation.

Glossary of Property Investment Terms | The House Crowd


An asset or property that is free and clear of any encumbrances such as creditor claims or liens. An unencumbered asset is much easier to sell or transfer than one with an encumbrance. Examples of typical unencumbered assets are a house without any mortgage or other lien on it, a car where the automobile loan has been paid off or stocks purchased in a cash account, rather than a margin account.

Glossary of Property Investment Terms | The House Crowd


The monetary worth of a business or property as determined by considering both qualitative and quantitative factors.

We hope you found this useful. If you have any questions, then please don’t hesitate to get in touch with us. We’re always here to help you with anything you might want to talk about, so do drop us a line!


The Latest Crowdfunding News – 10/7/16

The Latest Crowdfunding News


Hi guys and welcome to our first crowdfunding news edition for August. As usual we will be taking a look at the latest goings-on in the world of crowdfunding and today we start our round-up by focusing on London’s most exciting crowdfunding campaigns of the summer to looking at why equity crowdfunding matters to small business. Missed our last crowdfunding round-up? If so, catch up here.


London’s Most Exciting Crowdfunding Campaigns This Summer

London Property Prices

Turning to the crowd to fund the latest expansion plans or business venture as we know is becoming an increasingly popular option for businesses of all shapes and sizes, and last year crowdfunding in the UK reached £245m.

This year it continues to go from strength to strength with the likes of SyndicateRoom, Seedrs, and Crowdcube dominating alternative investment.

So what campaigns have excited those in the capital? Starting with Revolut, the London fintech launched a crowdfunding campaign last month in order to top up its oversubscribed £7m Series A funding round.

The fintech startup, which allows users to spend cash abroad on a fee-free Mastercard in conjunction with its app, experienced overwhelming demand with a record £12m pledged by interested parties within 10 hours of its launch according to Business site Bdaily.

We briefly mentioned about Crowdcube being a main player when it came to alternative investment, they too got in on the act and aimed at reaching a 5m raise which they exceeded. Crowdcube attracted £6.2 million of investment on its own platform, 124% more than it originally targeted.

Another exciting campaign that we have stumbled across is from Hire Space.

The London startup that has had big client names such as Facebook and Red Bull, closed its 500k crowdfunding campaign back in June. Their funding came from over 200 venues, event professionals and private investors respectively.

According to Bdaily : “Co-founder Edward Poland has some ambitious plans for the firm following the investment drive, with plans to ‘revolutionise the events industry’ both in the UK and abroad as Hire Space entrenches its position at the forefront of the market.”

We will definitely be watching this space (no pun intended!) for more future crowdfunding campaigns in the capital, here are two more from the Bdaily article that might be of interest, view here.


Crowdfunding App Tilt Adds P2P features

tilt crowdfunding p2p

We would normally add a P2P based story in our P2P news round-ups (if you missed our last one a fortnight ago you can catch up here), however, we previously mentioned Tilt in a December post and thought we would keep you updated about the app.

For those of you who have never heard of Tilt, in a nutshell the app is for groups of friends to pool money together for a group goals such as fundraising or funding a trip for example.

Tilt is now focusing on P2P features, the platform’s owners have opted to launch a formal P2P transfer function through the addition of “pay” and “request” buttons according to Business Insider.

Their 18-24 user base falls directly into the audience most attuned to digital P2P payments. Mainly because of the social nature of the app itself and many users know each other. This could definitely help the application thrive, because P2P applications benefit from engaged users bringing new users into the mix, who continue to refer additional customers and help expand Tilt’s network.

Image source : Tilt Twitter

Brexit Blamed for Fall in Crowdfunding Deals

Brexit crowdfunding

According to research by Beauhurst, they found out that crowdfunding platforms raised £87.4m in the first half of 2016, a drop of just over 4 per cent from the £91.3m raised in the previous six months. (, August, 2016)

In addition, their findings concluded that the uncertainty around the vote to leave the EU and the nature of the UK’s relationship with Europe has contributed to having deals being delayed or even abandoned.

UK Crowdfunding Association (UKCFA) spokesman Bruce Davis mentioned in the FT that the dip in deals is just a pause. In addition he stresses that the market has slowed down due to recent events, however, the UK is still taking a large share of the market.

Mr. Davis said that The UKCFA are confident that the number of deals will grow again, he stated in the FT : “The key to that will be strong signals from the government on strategy to see where it wants to see growth and investment.”


Dave Goes to Rio Thanks to Crowdfunding

RIO 2016 Crowdfunding

This one is for all you Olympics fans out that there! Dave Leach, a coach at Lewes AC has had a string of successful athletes at the Sussex based athletics club, including Rob Mullett who was selected to Represent Team GB at the Rio Olympics for the Men’s 3000m steeplechase.

Dave’s dream was to travel to Rio with Rob (who he has coached Rob since he was 12 years old), thanks to crowdfunding, Dave’s dream came true!

Club members, friends and colleagues used crowdfunding to raise the money to send Dave to the Brazilian host city; sponsors have kitted Dave and Rob from head to toe in Olympic fashion to be ready for all weather conditions there. In fact the funding was so successful, the target was reached and beaten (the initial target was 3k, however, 5k was raised for Dave).

For a coach who hasn’t been paid for 25 years and has never been on a plane before, this is another example of how crowdfunding has saved the day once again!

Image source : The Telegraph

Why Equity Crowdfunding Matters to Small Business – A View from The U.S.

Equity Crowdfunding USA

For those of you who follow our various blog round-ups know that we look at quite a few viewpoints and stories from all over the world, this time we turn our attention to across the pond.

A series of recent laws and regulations have opened the door to three new vehicles for raising investment dollars for small businesses through equity crowdfunding. These new forms of investment crowdfunding may well transform the nature of small business capital raising in the United States, by enabling individual investors to take equity stakes in new companies as Entrepreneur and Yahoo Finance both explain.

Last September, Title IV on the JOBS Act went into effect modifying regulation A of the Securities Act. In layman’s terms this piece of legislation has a very important meaning – growing companies in The States can now go public in a small offering and raise up to $50,000,000 dollars through a streamlined, low-cost alternative to a full public offering.

Companies can now test the water so to speak, meaning that small companies can let the public know that they are thinking of raising investment dollars. In America this form of announcement has been illegal since the 30’s, however, due to transparency levels and openness that these array of online platforms provide, it has now been made legal.

As a result of the legislation, many small business in America have learned to leverage small early stage investments via crowdfunding to increase their bargaining power and get more money from venture capitalists later as Richard Swart mentions in his article and these new rules give multiple financing options available to small businesses across the country.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

The Latest Crowdfunding News – 20/7/16

The Latest Crowdfunding News


Hi guys and welcome to another crowdfunding news edition, as usual, we will be giving you a snap shot of the latest news from the crowdfunding world, this week we predominately stay in the UK, however we end our round-up in Africa and look at the latest crowdfunding start-ups to keep an eye on. Missed our last crowdfunding news update? If so, catch up here.

Why Fintechs Are Turning To Equity Crowdfunding For Investment

fintech equity crowdfunding

Quite a few UK fintechs such as GoHenry, Mondo, and Tandem (who have all raised over £1 million from using equity crowdfunding) – but why have they used this approach?

Firstly, using equity crowdfunding is great for brand awareness and customer acquisition, UK fintechs have attracted significant attention in the media and as a result have raised awareness of their innovative ideas and products. From raising awareness, a majority of fintechs have gained potential investors to sign up for their products.

Moreover, due to the fact that scene continues to produce more and more start-ups by the day, it’s become increasingly hard to stand out. Therefore, offering customers the chance to become shareholders, (like Mondo and Tandem did), companies can drive customer engagement and loyalty.

Start-ups also use equity crowdfunding because it gives them control. This is because they can gain a higher valuation compared with traditional methods. According to research by Beauhurst, direct investors seem willing to accept lower equity stakes for the same investment than VCs or Angels. (Business Insider, July, 2016)

They beauty of using this approach is the diversity of investment sources. Crowdfunding offers an alternative to traditional sources of funding, which could be very beneficial if economic turbulence negatively affects VCs’ willingness to invest. Because of the Brexit, we might see more fintech start-ups turn to crowdfunding.

Read more here.

Crowdfunding : A New Era on The Cards?

Crowdfunding News Crowdfunding Finland

Two months ago, new rules* came into play which allow average people to invest in start-ups through crowdfunding sites that reward investors with equity. The new rules usher in a new era of crowdfunding that is accessible to individuals of all economic backgrounds, as mentioned by Crowdfund Insider’s Christian Catalini.

As part of the federal JOBS Act, Title III rules allows the average investor the opportunity to share in the returns of the “next big idea” as Catalini mentions in his recent article.

President Obama has said he sees it as a game-changer, these set of regulations will help all investors—regardless of income or net worth—will be able to invest in high-potential startup companies.

Title III will therefore help funding for small businesses, an essential vehicle for marketing and branding as well as a tool for building a committed user base for new ventures.

*Rules in the USA.


London-Based Crowdfunding Platform Goes Dutch

Seedrs Netherlands

London-based crowdfunding company Seedrs has expanded its international presence with a new office in Amsterdam. (City A.M., July 2016)

Seedrs, which does already has links elsewhere on the continent, a software development office in Portugal, and back in October it announced a new partnership with Benelux-based bank ING.

Chief executive and co-founder of Seedrs told City A.M. : “We have always had a pan-European vision for Seedrs, and the launch of our Amsterdam office brings that vision one step closer to reality.”


Khan Backs Twenty Crowdfunded Projects Across London

London Property Prices

The London mayor is helping to crowdfund 20 ‘citizen-led’ projects aimed at improving local communities across the capital.

The crowdfunding projects include: ‘Kitchenette Karts’ in Tower Hamlets, a healthy, sustainable fish and chip truck, ‘Old Kent Road Studios’ in Southwark, a project which aims at transforming 60 vacant garages into workshops and studios, and ‘Pengelicious’ in Bromley, a food festival. (KCW Today, July 2016).

Sadiq Khan recently mentioned that: “Our crowdfunding initiative is a chance for all Londoners to take part in the regeneration of their neighbourhoods from the grassroots up. Today I’m pledging support to an extraordinary range of local groups, for projects that will help strengthen their local communities and make London an even greater city.”

Interested in the projects? If so, check them out here.


5 African Crowdfunding Start-ups To Keep An Eye On

Africa Crowdfunding

Africa has seen a plethora of start-ups from all over the continent and crowdfunding has bags of potential to solve the continent’s lack of access to finance challenges.

Here (in no particular order) are five of the most innovative African crowdfunding startups to keep an eye out for.

Usizo – Bitcoin startup Bankymoon from South Africa has announced it will launch a crowdfunding platform, Usizo, that allows public schools in the continent to use blockchain technology to crowdsource utility credits.

This revolutionary concept means that anybody from around the world can make a payment directly from using their preferred crypto-currency, and help fund the energy or water needs of the school.

Realty Africa – Is the first crowdfunding platform that’s dedicated to property investments in Sub-Saharan Africa. The company was launched last year, in a nutshell, allows investors from all over the world to invest in the growth and development of the region.

Realty Africa provides investors with access to markets that have been historically out of reach, allowing them to invest amounts from US$1,000 upwards. Moreover, the platform allows communities and project developers to raise capital, without high interest payments or collateral requirements.

ABREC.FinanceUtile – Originally developed by the African Biofuel and Renewable Energy Company (ABREC) and in partnership with French crowdfunding platform FinanceUtile, is a dedicated crowdfunding platform for SMEs operating in the Sub-Saharan African renewable energy sector.

ABREC.FinanceUtile supports entrepreneurs in the renewable energy space by facilitating the transfer of know-how and technology, while also boosting access to reliable electricity generation in sub-Saharan Africa.

Lelapa Fund – Is a niche crowd investment platform dedicated to African companies (as described on their website). Investors can buy shares online in pre-vetted start-ups and small businesses whose products and services are sold on high growth consumer markets across the continent.

Thundafund – The South African start-up is one of the crowdfunding veterans on the continent, launched back in 2013, Thundafund has raised over ZAR5.7 million (US$396,000) from various crowdfunded projects.

They have recently put together work shops to educate fellow South Africans about how the crowdfunding process works.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 17/3/16

Crowdfunding News – All The Latest Updates


Hi guys and welcome to another fortnightly edition of the latest crowdfunding news. As usual we bring you an array of interesting updates from the crowdfunding world, today we kick things off by looking at Andy Murray backing five UK start-ups to investigating why crowdfunding has become a female founder’s best friend. If you missed our last crowdfunding blog post, feel free to catch up here. We hope you enjoy! ?


Murray Backs Five UK Crowdfunding Start-Ups

Andy Murray Investment

Andy Murray has been quite busy this year both on and off the tennis court. The Glasgow born tennis player has invested in start-ups via crowdfunding platform Seedrs.

His investments are with firms Oppo Ice Cream, Commuter Club, Landbay, We Are Colony, and Readbug.

The two-time Grand Slam champion who teamed up with Seedrs last June, invested undisclosed amounts into each start-up company.

London based Oppo Ice cream makes low-calorie ice cream, while Commuter Club offers commuters season tickets as a subscription service.

Fintech company Landbay offers P2P lending on UK buy-to-let mortgages, We Are Colony are a film streaming platform, and Readbug is an app that offers a curated selection of independent magazines.

Seedrs revealed that it has had more than £100m invested on its platform and has funded more than 320 deals to date, and on average raises up to £7m per month. (BBC, February 2016)

Unfortunately at The House Crowd we can’t offer you investments in really cool start-ups but we can offer you the latest property investments – interested? Take a look here.


Can Crowdfunding Bring Solar Energy To Small Businesses In The USA?

Solar USA Crowdfunding

Solar energy is one of the fastest growing new industries in the United States, earning a shout out from President Obama at his State of the Union speech. The president noted that it is now a bigger business than coal, and typically pays its workers a higher wage. (The Verge, March 2016)

Wunder Capital, a start-up from Colorado is trying to make it easier than ever before for anyone to invest in the solar-backed-boom.

The start-up company is aiming to fund small, commercial projects which have struggled to grow at the same rate as residential solar and big industrial deployments as The Verge point out in their recent article.

Last week Wunder announced that it will be raising its own funding, three million dollar round of venture capital that will help its team grow and expand into new market areas.

Nicole Litvak, a senior analyst at Greentech Media, thinks the new funding round is a positive sign for Wunder as it continues “working to bridge the disconnect” between early stage commercial projects in need of backing and small-scale investors who are interested in solar power.

Interested in Wunder’s solar concept? Learn more here.


Equity Crowdfunding Now Most Active Investor Type in UK

Equity Crowdfunding UK


Beauhurst – a data provider on high-growth UK companies released a report titled “The Deal” looks at equity crowdfunding from 2015/2016.

The data provider’s research tracks every fundraising transaction involving high-growth UK companies at seed, venture and growth stage, including many that were not announced by a press release or mentioned in the press according to Crowdfund Insider.

It was revealed that Crowdfunding, led by equity crowdfunding platforms such as Seedrs, Crowdcube, Angels Den, Seedcamp and Collider, have become the dominant investor type in seed-investing.

Moreover, Equity crowdfunding platforms also lead as single investors in venture stage, with Crowdcube (they had the single most prolific equity investor in 2015 with 136 transactions) ahead of Andy Murray’s favourite platform Seedrs.

For those of you who love visual data, we have enclosed Beahurst’s research below.


(Image Source : Crowdfund Insider)

Therese Torris, business strategist, eCommerce and eFinance writer mentions in Crowdfund Insider that across the three stages of investing, equity crowdfunding is now the second most active funder type after private equity firms, far ahead of angel networks and private investment vehicles.


Crowdfunding Is No Longer Only An Option For Start-Ups

Crowdfunding News

Crowdfunding is commonly associated with start-ups, however, big businesses are now learning how to deal with outside investors.

For example, the same week the CES 2016 (Consumer Electronics Show) took place (if you don’t know the place that shows off the next best things in tech) Indiegogo launched a new platform called Enterprise Crowdfunding, which in a nutshell provides support to established businesses looking to test the waters with a new product.

Indiegogo provides strategy, support, promotions and analytics for enterprise users, as well as their users who have a track record of taking a gamble on new ideas. (World Finance, March 2016)

However, the main risk (as World Finance’s Callum Glennen quite rightly mentions) for big companies would be a loss of good faith from the crowdfunding community, who may see projects from big companies as a misuse of the system.

We actually have covered this topic in a previous crowdfunding blog post (view here) but seems to be a common topic the crowdfunding world and the main argument here is that high-profile celebrities and companies can fund their own ventures, plus afford to take the hit if their project goes south.

The concern is that it could drive out the real entrepreneurs who will be the real future engines of the economy. On the flipside it can viewed with a well made, open and clear campaign, larger businesses can engage and expand their customer base by operating in a more public and transparent approach.

Which side do you take on this crowdfunding issue?


Crowdfunding Is A Female Founder’s Best Friend

Crowdfunding Women


At the end of the day no matter who you are, raising funds isn’t easy. As Forbes’ Geri Stengel points out – it’s no secret that women entrepreneurs have an even harder time raising capital from angels, venture capitalists and bankers than their male counterparts. (Forbes, March 2016)

But did you know….? Women outperform men when raising funds for their companies through rewards-based crowdfunding.

With rewards based crowdfunding the backer receives a tangible item rather than shares in a company. In most cases the item that you are given is the product you are trying to raise money to produce.

So how are women championing crowdfunding? Berkeley-Haas School of Business and the Kellogg School of Management found women have the ability to tell compelling stories and connect at an emotional level.  Their research also found that their use of vivid and inclusive language made them also outperform male entrepreneurs.

Want to know more about the research on women and crowdfunding? If so, click here.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 17/2/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from around the world in five minutes. If you missed our last edition, you can catch up here. Today, we once again clock up the air miles and start our crowdfunding journey in New Zealand and finish in Greece for some baseball action!

New Zealand Beach Hits Crowdfunding Target

New Zealand Crowdfunding

A crowdfunding campaign in New Zealand to raise funds to buy a beach for public use has successfully hit its target.

Campaigners had until Tuesday to raise NZ$2m (£914,000, $1.3m) and place a bid on the currently private beach according to the BBC.

More than 36,000 people have now supported the beach campaign and donations continue to flow in from all over the country.

People were quick to get involved and the money was raised in less than a month after a group of friends plotted the purchase.

The beach in Awaroa, South Island, has been owned by a Wellington-based businessman since 2008. A real estate company has advertised the stunning area as a remarkable seven-hectare utopia” with “three modest buildings dotted amidst the mature native bush”. (

The crowdfunding campaign’s Give A Little page has stopped showing the running tally once it hit NZ$2m, so the total amount of money has been raised is unknown.

About a fortnight ago, New Zealand’s prime minister mentioned that he wouldn’t rule out a government contribution if needed.

Crowdfunding Saves SMEs

crowdfunding smes

Since the 2008 financial crisis, SMEs have looked at alternative ways of gaining funding and crowdfunding platforms such as Kickstarter and Seeders have helped fuel the way that SMEs think about business and finance.

They beauty of crowdfunding for start-up companies is that the concept bypass traditional funding streams such as grant applications or bank loans as innovation charity Nesta mentions in The FT.

Figures indicate that the value of crowdfunding expanded globally by 167 per cent to $16.2bn in 2014, up from $6.1bn raised in 2013. (The FT, February, 2016) The crowdfunding industry doubled in 2015, according to stats from a City A.M. article, crowdfunding on a global level expanded to $34.4bn.

The UK seems to be championing crowdfunding compared with other countries such as Canada due to slower adoption rates and regulatory constraints.

UK start-ups such as Brewdog are a great example, the Aberdeenshire company broke equity crowdfunding records by raising £5m in the first three weeks of its fundraising round, using its own platform — Equity for Punks. You can read more about their story here.

A Brief Insight Into French Crowdfunding (In Numbers)

French Crowdfunding

The French Crowdfunding Association (Financement Participatif France) has recently compiled some data based on crowdfunding activity during the 2014-2015 period.

In France, the slowest area of growth was in donations / rewards. The lending or debt sector experienced the most dramatic growth according to Crowdfund Insider.

The French Crowdfunding Association mention that funds collected jumped from €152 million in 2014 to €296.8 million for 2015.

Let’s take a look at French crowdfunding in numbers

  • Rewards / Donations – €50.2 million
  • Loan Based/P2P – €196.3 million
  • Equity/Royalties – €50.3 million
  • The most active age in all crowdfunding categories is 35-49
  • Average investment for an equity was €4,342
  • Hottest sector for equity crowdfunding is property

In 2014 France updated regulations on alternative forms of finance, while the rules are not perfect as Crowdfund Insider’s JD Alois puts it, on the flipside, there is a healthy eco-system in place for crowdfunding. It seems that regulations need to be addressed further as one source has mentioned that crowdfunding in France is not as clearly defined as, for example, banking. We will keep you updated about more crowdfunding news in France in future crowdfunding news blogs.

Seedrs Hits £100 Million Invested In Early-Stage And Growth


Seedrs, the UK’s No. 1 equity crowdfunding platform, recently announced that it has had more than £100 million invested on its platform in early-stage and growth focused businesses since it launched back in July 2012.

2015 was a great year for the company, not only had over a £100 million invested on the platform, it also had over 38,000 investments made on the site.

Standout funding rounds on Seedrs in 2015 included, healthy eating high street brand, Tossed, which raised £1.34 million from 661 investors, and award-winning cloud accounting software, FreeAgent, which raised £1.21 million from over 700 investors. (Mondo Visione, February, 2016)

Seedrs now has significantly more people using its site than any other UK equity crowdfunding platform.

Last month the equity crowdfunding platform was named a Bloomberg Business Innovator 2016, an award that recognises “the people changing how the UK lives, works and thinks,” as well as joining Tech City UK’s Upscale Programme of 30 of the fastest-growing UK tech companies.

Greece Baseball Team Crowdfunding To Reach European Championship

greece baseball crowdfunding

One for all you sports fans out there! Greece’s men’s national baseball team has set up a crowdfunding page in order to raise funds so they can participate in the European Baseball Championship in Hoofddorp, The Netherlands.

The Hellenic side had qualified for the tournament having finished in tenth place at the 2014 edition of the event, which was won by the Dutch team and claimed the last remaining automatic spot.

Due to the country’s economic situation, the Hellenic Amateur Baseball Federation (HABF) has been shut down by the Government, putting their hopes of competing at the tournament in jeopardy.

Without a National Federation recognised by the Confederation of European Baseball, the team would be unable to participate in the event which takes place in mid September.

Tom Mazarakis, the team manager and former HABF President Panagiotis Mitsiopoulos are due to meet with the Government soon in an attempt to have a new Federation put in place.

If a new federation is granted, the team are hoping to raise $35,000 (£25,000/€32,000) through crowdfunding to ensure that it will be able to support the team on a long-term basis.

Love baseball and interested in helping the Greek team out? Click here.

Unfortunately at The House Crowd we can’t help you crowdfund your favourite baseball team, however, we can offer you at our very own Manchester guides (North and Central) and an ideal place to watch and play baseball!


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 3/2/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from around the world as well domestic news. If you missed our last edition, you can catch up here.


Axol Biosciences Smashes Its Crowdfunding Target

Axol Bioscience

In our very first crowdfunding blog of 2016 one of the stories we covered was on the biotech industry turning to crowdfunding. We thought we would cover another biotech story since it was announced that Cambridge based firm Axol Bioscience has officially smashed its crowdfunding target.

The biotech firm has already pledged £656,000 to its’ campaign on local crowdfunding platform SyndicateRoom. The campaign doesn’t end until the 28th of February and the company is now over-funded up to a total of £1million according to Cambridge News.

So what does Axol do exactly? In a nutshell they make stem cell-derived human cells for use in medical research. Their team of scientists create the stem cells from human blood and skin cells which can then be turned into heart, brain and blood vessel cells for testing new drugs, they hope by applying this approach, it can slash costs for pharmaceutical companies.

Abcam (another biotech firm from Cambridge) founder Dr Jonathan Milner who has pledged £400,000 to the crowdfunding campaign told Cambridge News that “I’m really excited by what the future will hold for Axol due to the colossal market opportunity we’re addressing and how well Yichen (company CEO) and his team have been delivering our plans.”

He goes on to say that initially he intended to invest £200,000 but as he previously mentioned about the colossal market opportunity, he doubled his investment in the biotech firm.

Axol continue to go from strength and have recently hired Professor Chas Bountra to its advisory board.

Professor Bountra will use his array of contacts to help Axol build strong links with the public and private sectors respectively.

Image Source : Cambridge News

An Insight Into First Equity Crowdfunding 2016 Deal In Australia 

Australia Equity Crowdfunding

A global student support platform has raised more than $675,000 through VentureCrowd in the first equity crowdfunding deal in Australia for 2016 according to Start Up Smart.

Zookal, which was founded in Sydney and is now based in Singapore, has raised well over its $500,000 target on the crowdfunding platform. The startup provides a platform offering a variety of services and products for university students.

The campaign has only a couple of days left and has raised $675,000 from 15 wholesale investors, which in total values the company at $US20 million.

Currently in Australia, equity crowdfunding is restricted to what is deemed as a ‘sophisticated investor’ with a net asset of $2.5 million or have an aggregated gross income for each of the last two years of at least $250,000.

The Australian government  revealed its legislation to loosen these restrictions by the end of the year as Start Up Smart mention in their equity crowdfunding article. The legislation places a cap of $5 million on companies who to choose to follow this particular path, plus a $10,000 cap on the amount a retail investor can pledge.

Last year the Labor Party in Australia withdrew its support for the bill as they strongly felt that the startup community had been dealt a “great disservice” by it.

VentureCrowd’s Luke Fay mentioned to Start Up Smart that he hopes the  Australian government will consult with those impacted by the reforms, he stressed that successful campaigns won’t come to a halt as a result of the legislation.

If you would like to know about this story visit Zookal’s site here we also recommend reading OzCrowd’s brief blog post on Equity Crowdfunding in Australia.

Invest In Your Favourite Football Players And Clubs

football investment

Israeli fintech startup Football Fans Marketplace (FBFM) is using crowdfunding for footy fans to feel closer to their players and their clubs.

Israel 21c mention that the online marketplace will allow fans worldwide to invest in their favorite players and clubs. The platform,, is now open for early registration of fans and European clubs that meet FIFA and UEFA conditions and are expected to yield high returns for investors.

Users can build dream football teams, track the teams’ progress and support players and clubs by offering them low-interest long-term loans managed through the platform and really brings fantasy football to an entirely different playing field.

Unfortunately at The House Crowd we can’t help you invest in the latest wonder kid who has been dubbed ‘the new Sergio Agüero’ however, we can offer you at our very own Manchester guides (North and Central) and an ideal place to experience world class football!

You can read more about Football Fans Marketplace here.

Image Source : Israel 21c

Making Manchester Shiiiiiine With Community Energy

manchester crowdfunding

Eighteen organisations from the city have joined in unison to launch Community Energy GM – a project aimed at lighting up the city with community-owned solar power.

Following the recent floods in the North West of England, the issues of climate change and fuel poverty have once again crept up in the news. The project is raising funds for 20 buildings to get brand new solar rooftops – powering their community activities and strengthening ties with local neighbourhoods.

The solar power project was created by the Greater Manchester Centre for Voluntary Organisations (GMCVO) and climate change charity 10:10.

Interested in the project? If so, you can find more information on the project, including how to make a donation from £5, at


Shacky Tiny House Startup Supports Aussie Farmers

Shacky Tiny House Crowdfunding

We return once again to Australia and this time look at Shacky introducing holiday tiny houses to rural Australian properties to offer farmers an added source of income.

Twenty-five year-old Dutch native Joep Pennartz founded Shacky­­ after moving to Australia last year and learnt about the hardships being experienced by local farmers.

Pennartz told that the sheer financial stress from decreasing farm income leads to rising depression rates, an ageing farmer population has left rural farmers to leave their land.

The idea of Shacky project is to position tiny houses on rural properties, allowing farmers to generate income from renters who lease the space as holiday accommodation.

The first Shacky house will be located on the Tarndie Farm in The Otways in Victoria and the crowdfunding campaign will run from February 17 to March 28 where people can pledge funds towards the business via the Pozible crowdfunding platform.

For more information on the Shacky houses click here.

Image Source :


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information