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One of the first major insolvencies in the PropTech sector highlights how difficult disrupting real estate can be.
Brickvest was one of the leading lights of PropTech, particularly in the field of capital markets. The crowdfunding platform, which allowed investors to buy into real estate deals in the UK, U.S. and Europe for an investment of as little as $1K, had achieved a level of success.
It had raised more than £15M of equity to grow its business from a variety of investors including two German banks and venture capital firm Global Founders Capital, which has backed big names in tech including Facebook and Slack.
It crowdfunded capital from individual investors to buy into large real estate deals and was targeting £100M of assets under management, making it one of the largest real estate crowdfunding platforms. It even sold out of one deal giving its clients a 31% return.Yet in November the company went into administration,…
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