Brickowner

Idea

Introduction

Brickowner aims to become the leading service provider for property developers and asset managers wanting to improve the cost and efficiency of onboarding and managing their investors.

Brickowner successfully caters for two client groups and has repeat business from both:

1. For property asset managers, on-boarding and managing investors is becoming increasingly complicated. We have automated this process, making it significantly cheaper and quicker than offline processes. We manage their investor onboarding - Anti Money Laundering (AML), Know Your Client (KYC), investor categorisation, and escrow requirements.

2. We continue to have crowd investors as our other customer group. They often find it hard to source or access professionally managed property investments. Such investments are mostly not widely marketed, nor open to investors wishing to invest smaller sums. We aggregate these investors and automate the on-boarding so asset managers are able to take their smaller investments.

Substantial accomplishments to date

We launched our secondary market in February 2021

We have created a new scalable fund structure that we plan to launch in Q3 2021

Both of these combined are intended to support significant growth in a number of ways

1. The secondary market introduces an opportunity for liquidity which we believe will give investors comfort to invest greater amounts for longer terms

2. Fees generated from the secondary market add a further revenue stream

3. Through a combination of our new structure and the secondary market we plan to grow our B2B business significantly. We are already progressing with our first property fund client, which will back an existing fund onto our secondary market. They can then benefit from our automated investor administration, and provide their investors with liquidity via our secondary market.

We have successfully exited 5 of our investments, all of which achieved their projected returns, including two investments exited successfully during 2020, despite market issues caused by COVID-19. For our 5 redeemed investments we have achieved an average annualised net return to investors of 11.3%.

Over £15m had been invested through the Brickowner platform to date.

We have c 3500 investors registered on the platform, with over 765 active investors. Almost 70% of our investment comes from repeat investors.

We have repeat business from our asset manager clients and investors

Monetisation strategy

We outline our fees within the property term sheet for each specific investment. We typically charge 2 fees to the property asset manager / developer for our primary market:

1. 0.75-1% per annum of the amount invested.

2. An upfront placement fee of up to 5%.

Fees vary from investment to investment, depending on the size and type of the deal. Some investments also have an exit fee.

We charge a fee of 2% to sellers on our secondary market

Further fee generation will be possible from our new products. For example, we are planning to create our own themed funds using an auto-invest function. This will offer investors instant diversification across a pool of assets. An extra fee would be charged for this.

Use of proceeds

This present raise will help accelerate the growth of Brickowner, with the investment going towards:

1. Technology investment – adding further features and functionality to the platform, including in particular building out the functionality for property asset managers, our B2B clients.

2. Developing the B2B business, including new potential hires to help drive this growth

3. Increased marketing to support growth