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Portfolio

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On a mission to bring property investment to the masses

307%
 - 
Funded 6 May 2022
£500,005 target
£1,546,655 from 814 investors
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Business overview

Location Manchester, United Kingdom
Social media
Website portfolio.co.uk
Sectors Finance & Payments Mixed Digital/Non-Digital B2C
Company number 13997249
Incorporation date 23 Mar 2022
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Investment summary

Type Equity
Valuation (pre-money) £55M
Equity offered 2.72%
UK tax relief N/A
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Business highlights

  • App now live (iOS and Android) with waiting list of over 8,000
  • Over £6.8 million of property already bought via the platform
  • A scale-up with a 50+ team and >£5.5m revenue in 2020*
  • Making a £1.7 trillion asset class accessible to everyone
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Key features

  • Secondary Market
  • Nominee investment min. £55.00 +

Idea

Please note that this is not an investment in The Property Hub REIT. Read on for full details of the investment opportunity.

Introduction

Residential property is one of the UK’s most popular investments – despite it being hugely expensive and a lot of hassle to get into.

We’ve been serving property investors for 9 years, and we’re sick of property being stuck in the past. You can invest in shares or crypto from your phone, in minutes…and now, for the first time, you can do the same – with Portfolio.

Portfolio captures the full property investment experience, with none of the hassle and a fraction of the cash needed. Investors can enjoy in-app video updates and property tours – and have the potential to benefit from capital growth and rental income, just like owning property directly.

With our team of 50+ and aided by our extensive industry track record, we've already launched the app and established a fund that’s bought over £8m of property. Now, your investment will help us on our mission to turn Portfolio into a household name and bring property investment to the masses.

Substantial accomplishments to date

The Portfolio brand was launched in November 2021 and we’ve already achieved a huge amount:

· Established the fund (a Real Estate Investment Trust) that sits behind the app and holds the property assets

· Built and launched the Portfolio app (iOS and Android), and brought in more than £6.8m from investors

· Built a waiting list of over 8,000 users

· Advised the fund in the purchase of 18 properties in its first year, including one of Europe’s highest penthouses!

· Become an approved borrower with a major lender

The Portfolio brand is part of a group that also includes the educational and property sourcing businesses branded as Property Hub. By backing this campaign, you’re investing in the overall group – meaning you get a stake not just in Portfolio, but also our other well-established lines of business.

Property Hub has existed as an educational brand serving property investors since 2013.

In that time we’ve:

· Built an online community of more than 65,000

· Grown The Property Podcast to 270,000+ monthly downloads (>9.4m lifetime listens)

· Published multiple best-selling books with more than 1,500 five-star reviews

· Established a YouTube channel with over 29,000 subscribers

We also help clients to build buy-to-let portfolios by providing strategic advice and sourcing discounted deals directly from developers:

· More than 1,500 lifetime transactions arranged

· £69m of property sourced and sold in 2021

· Transacted with 3 FTSE-listed house-builders

*Based on unaudited management accounts

Monetisation strategy

The group has three principal sources of revenue:

1: Recurring fund management fees, based on percentage of the net assets of the fund.

2: Transaction fees payable on properties acquired by the fund.

3: Fees generated by Property Hub Invest for sourcing and transacting on buy-to-let properties for clients.

These revenue sources are already established, and the first two are expected to scale as the fund grows.

Use of proceeds

Everything we’ve achieved so far has been funded without any external equity investment. Now we’ve proven the concept, this crowdfunding round will let us rapidly bring Portfolio to the mass market.

To achieve this, we’ll be allocating the funds raised to:

· Marketing Portfolio to the mainstream. Portfolio’s current user-base has come mainly from the large and enthusiastic audience we’ve built up organically. With funds for paid media campaigns, we can expose Portfolio to potentially millions of new investors.

· Improving our technology. We’ll continue developing the app to make the user experience even more compelling and capture the excitement of being a hands-on property investor.

· Strengthening the team. We already have a team of 50+ across our London and Manchester offices, with deep expertise across property, finance and technology. The funds raised will allow us to strengthen the team even further, bringing in the expertise that will take Portfolio to the next level.

Key Information

Share Capital:

The company currently has 3 classes of shares; A Shares, B Shares and C shares pre-raise. The Company will be issuing a new class of shares, Ordinary Shares, as part of this round.

All investors in this round, including Seedrs investors, will be receiving Ordinary shares. Ordinary shares shall rank equally with A, B and C shares in terms of voting, capital on winding up and dividends, the only difference being that A, B and C shares entitle the Founders to receive special preferential dividends in lieu of salary (the amount of which is capped at market salary rates).

Sale of Subsidiary Business:

The Company is currently in the process of selling one of the Subsidiary Companies in the group, Property Hub Lets Limited (PHLL), as part of a strategic realignment of the business. PHLL provided property management services for landlords.

Group Structure:

The Company is currently undergoing a re-organisation as part of a strategic realignment of the business. This re-organisation is in progress, and will be completed prior to the closing of the round.

Investors in this round are investing into and will become shareholders of Portfolio Group Holdings Limited, Co. No.13997249. This is the Top Co. for the group with no trading activities.

Within the group there is another holding company, as well as 6 wholly-owned subsidiary limited companies, and one subsidiary LLP. The group structure is as follows:

- Property Hub Holdings Limited: The holding co. for the group which sits below Portfolio Group Holdings Limited (PGHL). 100% of shares are held by PGHL.

- Property Hub Advisors Limited: Provides investment advisory and consultancy services to property investment fund, Property Hub REIT Plc.

- Property Hub Subco Limited: Introducer Appointed Representative (IAR) of the fund manager of Property Hub REIT Plc, mainly focusing on distributing financial promotions via various platforms and media under the applicable regulations.

- Portfolio Technologies Ltd: Develop and maintain the investment application, which enable investors to buy shares in the REIT and potentially more investment products in future.

- Property Hub Forum Limited: Provide educational materials to property investors via various channels such as magazine, podcasts. It also acts as a central cost centre for group cost.

- Property Hub Invest Limited: Provide investment sourcing, consultancy, and conveyancing management services to investors.

- Olive Property Construction Limited: Property development company which is no longer the strategic focus of the business.

- Property Hub Advisory LLP: General partner of Property Hub No.1 LP, which is a subsidiary of the Property Hub REIT Plc, which invests in residential properties in UK.

Material Debt:

Property Hub Invest Limited, one of the subsidiary Companies in the group, has the following outstanding loans:

1. £250,000 Coronavirus Business Interruption Loan (CBILS) loan from Funding Circle at an interest rate of 13.1% per annum. The loan was entered into in June 2020, and is to be repaid by June 2025.

2. £250,000 Coronavirus Business Interruption Loan (CBILS) loan from Iwoca at an interest rate of 12.69% per annum. The loan was entered into in March 2021, and is to be repaid by March 2024.

The funds raised from this investment round will not be used to repay these loans.

Overdraft Facilities:

One of the Subsidiary Companies, Property Hub Invest Ltd, has two overdraft facilities at its disposal:

1. £50,000 overdraft facility with Natwest.

2. £100,000 overdraft facility with Barclays, with a charge over the subsidiary Company's assets.

As it stands, the company is not currently using either overdraft facility.

Founder's Interests:

Rob Dix also owns a personal website called 'Property Geek' which provides advice and guidance on Property investing.

This site pre-dates his involvement with Property Hub, and occupies less than 1 hour per week of his time. Property Geek is not revenue generating.

Investor Perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Portfolio has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 27 April 2022 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £55,000,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Republic Europe.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Republic Europe

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Republic Europe campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Republic Europe will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Republic Europe will not benefit from any rights under a shareholder agreement. As a result, Republic Europe will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

If available, this is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer or using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Republic Europe. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

Warning

You are following a link outside of europe.republic.com.

None of the information in constitutes part of the campaign and it has not been approved or reviewed by Republic Europe.

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