Update (13/01/16): The Homes or Houses campaign closed today and raised a total of $611,000 (151% funded).
Homes or Houses, a UK-based real estate business that specializes in the sourcing and renting of properties for expatriates and foreign buyers investing in UK property, has smashed the Eureeca record for largest raise. This massive raise is nearly 2.5 times larger than the previous record amount on Eureeca.
And while the size of the campaign’s raise is impressive, there are many other aspects that make it a thing of equity crowdfunding beauty. Here’s a list:
Customer buy-in: We are constantly advocating for businesses to leverage equity crowdfunding to cement customer loyalty and gain early momentum in campaign by getting customers to invest in the deal. Despite its simplicity and potential effectiveness, this opportunity is not always exploited.
Not in the case of Homes or Houses, though. Jackie had faith in her product and her customers’ loyalty to it, and she was right; a majority of her crowdinvestors are pre-existing Homes or Houses customers.
Market expansion: Homes or Houses is a British business but 80% of its customers reside in the UAE (it’s the first UK business to successfully raise via Eureeca). Because of this, Jackie plans on opening up an administrative office in the UAE to continue developing her business in this important market. It makes sense, therefore, to utilize the Eureeca’s positioning in the UAE and to raise capital from UAE-based investors. Mission accomplished.
It is one of the first examples of a global equity crowdfunding platform connecting businesses with investors from two seemingly disconnected regions.
Institutional investment: Equity crowdfunding is a viable investment vehicle for both individual and institutional investors — and this is supported by the fact that a local UAE institutional investment firm invested $200k (the single largest investment ticket on Eureeca) in the deal.
This shows the growing trust in Eureeca’s equity crowdfunding model by investors of all types.
Equity crowdfunding is rapidly maturing and the Homes or Houses campaign shows where it’s going and what it can be.
Congratulations to Jackie and the rest of the Homes or Houses team on their immense success.