Estate agent Nested, which helps buyers purchase a new home before their old is sold, has raised £36m in its latest round of funding, which is spearheaded by global founders capital.
The funding represents the largest PropTech investment in Europe for 2017, and is the third round of financing that Nested has secured within 18 months, bringing the total raised to nearly £50m.
Launched in January of this year, Nested is a unique estate agent service that provides sellers with up to 97% of the value of their property when it is required, and the balance when the home actually sells. The seller can use this money to buy a new home before their former residence is sold.
Nested will market the property and locate a buyer and, regardless of how long it takes to sell, the homeowner will receive the total sale amount of the property once the sale is completed, minus the fees charged by Nested. This strategy gives sellers the same power in the market that cash buyers currently enjoy.
The news of Nested’s large PropTech investment appears at the same time that Land Registry data confirms that between 30 and 40% of all UK property transactions involve cash sales.
Nested was co-founded by Matt Robinson, a veteran entrepreneur whose past achievements include GoCardless, the online payments company.
Mr Robinson, who is Nested’s CEO, said that anyone who has ever sold a UK property is all too aware that the system is defective. Most sales are stressful and drag out over months, with one-third of all sales falling through. To make matters worse, sellers don’t know that only two things really matter- the sale price and when they will receive the proceeds- until after the home is sold.