Nested secures £120m to continue re-inventing how you sell your home
Sunday, November 11, 2018
The company has raised £120m of new funding, consisting of £100m of debt and £20m of equity finance, bringing total funding to date to £165m
Equity capital has been secured from leading European VCs Northzone (backers of Spotify and Zopa) and Balderton Capital (investors in Betfair and Revolut)
Nested’s fundraise is the largest investment in a UK PropTech company this year
Nested, the property start-up that is re-inventing estate agency, has raised £120m in funds to continue transforming home selling in the UK. The round consists of £20m in equity finance from leading European VCs Northzone and Balderton Capital and £100m of debt finance from an institutional investor.
The money will be used to scale in and beyond London, and launch a number of customer tools and services that, along with their unique advance, will redefine how consumers sell their home. Launched in 2016, Nested is the first estate agent to make homesellers chain-free. The company provides a cash advance on the value of the property enabling customers to become cash buyers, which speeds up the process of moving home.
Nested has experienced rapid growth, helping over 400 home-owners during a period of market uncertainty which saw home sales fall 12% over the last year and 61% of London homes withdrawn from the market without selling , an effect of a slowing market in anticipation of Brexit.
Nested is fixing the broken process of buying and selling homes, bringing honesty and trust to the sector. By combining their unique advance product with local agent expertise and a data-backed agency, they are able to provide customers with a service that no other estate agent can match. Data-driven valuations provide vastly improved accuracy compared to high-street estate agents. Committed to bringing transparency to an opaque industry, Nested makes its valuation performance public.
Matt Robinson, CEO of Nested, said: “We’re excited to receive the backing from some of Europe’s top VCs who share our vision for fixing the age-old problem of buying and selling homes. We are building an incredible team to offer an unassailable service with the most progressive technology in the property industry. This investment will allow us to continue solving the problems that prevent people from moving home with ease.”
Jeppe Zink, Partner at Northzone, said: "Selling a home is the biggest and most important transaction most people undertake. Yet the sales process remains opaque, with the resulting never-ending property chains becoming the bane of the industry. I was immediately convinced by Matt’s vision for Nested to fix this, giving homesellers an accurate view, backed by an advance, of the price they can achieve for their property. This means they can have peace of mind and the freedom to focus on securing their new dream home. I truly believe that Nested can be a fundamental game-changer and we are incredibly excited to be part of the journey."
12% decrease in Residential Property Transactions from Sept 2017 to Sept 2018: HMRC Property Transactions
61% of homes listed for sale in London withdraw from the market: Dataloft & Reapit
Nested sell for an average of 1.5% more than the average valuation: Nested Performance
About Nested: Fixing home selling in the UK
Nested is an estate agent with a difference. It provides homesellers with up to 94% of their home’s value when they need it and the rest when it sells, helping them to secure their dream home and providing certainty in an uncertain market.
The innovative start-up was founded by established entrepreneurs, Matt Robinson (former GoCardless co-founder and current Board member) Phil Cowans (former Songkick CTO) and trained architect, James Turford.
Nested does all the work of a traditional estate agent, but unlike other agents it provides additional value-add services including; experts at every step of the process including a dedicated progression team, data-driven, transparent valuations, and an advance of up to 94% of the market value. If the home sells above this amount the seller will receive that too (minus their fees) and if it sells for less, Nested will take the loss.
About our investors
Northzone is a venture capital fund with offices in London, Stockholm, New York, and Oslo. To date, it has raised eight funds with €1bn currently under management, and invested in some 130 technology-enabled companies, including category leaders such as Spotify, iZettle, Klarna, Avito, Trustpilot, Zopa, SpaceApe, Lastminute.com, Stepstone and more. For further information, visit https://northzone.com/
Balderton Capital is Europe’s largest early-stage venture capital investor, focused on European technology companies at Series A. Based in London, the firm manages $2.7bn and invests in entrepreneurs building globally ambitious businesses. Balderton’s Partners include the founders and operational leaders of multi-billion dollar companies including Business Objects, Dropbox, Uber and Autonomy; Previous investments include Betfair (FTSE: BET), Magic Pony (Twitter), NaturalMotion (Zynga), Sunrise (Microsoft), Talend (NASDAQ: TLND) and Yoox Net-a-Porter (BIT: YNAP). Among Balderton’s current portfolio of 85 companies are: Aircall, Carwow, Citymapper, Contentful, Frontier Car Group, GoCardless, The Hut Group, Kobalt Music, Nutmeg, Prodigy Finance, Recorded Future, Revolut, ROLI, SOPHiA Genetics, Vestiaire Collective, and Vivino.
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