PropTech Funding Roundup: einwert, Requity Homes and Downpayments

Many in the PropTech world are hoping for increased investor confidence and a change in the funding climate. As we wait to see whether 2024 can deliver on expectations, we bring you the news of three funding rounds.

German Value Management Platform einwert Raises €4M in Seed Funding

einwert, which offers real estate valuations prepared by certified appraisers, has raised €4M in seed funding led by early-stage VC Ventech.

Ventech joins existing investors 468 Capital, Wecken & Cie, Auxxo Female Catalyst Fund and infinitas capital to support einwert's goal of becoming Europe's leading real estate value management platform.

Other investors include Ulrich Groß, Jürgen Roth (Immowelt), Oliver Manojlovic (Personio), and Dr Stephan Rohr (founder and co-CEO at TWAICE).

einwert lets users commission valuations via qualified partners and is accessible digitally at any time via the einwert platform which aggregates current market data from a wide range of providers, all relevant real estate, valuation and market information into one place.

Dr Christina Mauer, co-founder and CEO at einwert, said:

"We have been able to translate our vision of revolutionizing property valuation into reality. The market needs a digital platform on the scale that only we currently offer. The new financing enables us to meet the high demand even faster and further expand our offering."

Nicolas Barthalon, Principal at Ventech, said:

"einwert fills a gap in the B2B real estate market. Its innovative market approach leads us to believe the company is promised to a bright future.

"The team’s first-hand experience of the analog valuation process, its vision to build a large data platform on top of it and its ability to attract talents convinced us to invest. We are thrilled to be part of an international syndicate of industry experts that will support einwert’s platform growth trajectory and global expansion."

einwert was founded in 2022 and is based in Munich.

Canadian Proptech Requity Announces $26M Equity and Debt Financing

Toronto-based rent-to-own startup Requity has secured a combined $26M of equity and debt financing co-ed by Highline Beta and experienced tech executive and angel investor Sam Sun, with participation from other investors including Boardwalk Investment Ltd (Kolias Family Office), Conconi Growth Partners and new participants including Archangel Adrenaline Fund.

Requity Homes offers a simple alternative to traditional homeownership: the company will buy the house on your behalf, allowing you to save money for a mortgage in the meantime. When you're ready, Requity sells the home to you at a pre-determined price, effectively getting you on the housing ladder in a more risk-averse way.

Requity Homes was founded in 2020 by Amy Ding. She said:

"With the increasing challenges in the housing market, alternative paths to homeownership are essential.

"We’re proud to share that 80% of our customers have successfully bought back their homes in 18 months on average. This is a strong testament to our commitment to providing innovative and practical financing solutions for many newcomers, self-employed workers, and business owners in need."

Requity startup raised $1.2M in a pre-seed financing round in 2022.

Downpayments Secures $31.8M in Debt Funding and $1M in Equity

Miami-based startup Downpayments will continue its mission of making it easier for investors to purchase new properties with interest-free down payments.

The company has secured $31.8M in initial debt funding from Partners for Growth and a further $1M in equity financing from Second Century Ventures, which is backed by the National Association of Realtors (NAR). The capital will be used to increase Downpayments' buying power for new transactions.

Downpayments generates revenue by charging a commission to the buyer's agency, while its interest-free down payment offer is offset by packaging the in-house buyer’s agency brokerage services paid for by sellers.

Godfrey Dinh, co-founder and CEO at Downpayments, said:

"Until now, most property investors have turned to ‘cash-out refinances’ to access their next down payment.

"Cash-out refinances are an inefficient way to access capital and mortgage rates skyrocketing to nearly 8% has created a difficult environment for investors to cash-out refinance without losing their existing low fixed rate. And, home equity lines of credit (HELOCs) are not available on investment properties.

"Downpayments is not dissimilar to the BNPL (Buy Now, Pay Later) industry where the merchant pays to help cover the cost of finance for the buyer, albeit with Downpayments, additional services are provided to the buyer to create more value for our clients."

Dinh is also the founder and CEO at Australian fintech Futurerent, which offers landlords up to $100,000 of rent in advance. Downpayments was spun out of Futurerent in October last year, with Dinh at the helm of both companies.