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CapitalRise Analysis

Real Estate Debt
Real Estate Crowdfunding

Last updated in September 2022.

What is CapitalRise?

A pivotal player in the British property crowdfunding market, CapitalRise has funded over £151M in projects since the company launched in 2016. The high-end platform offers low-cost investment options for some of London’s prime real estate developments. Through CapitalRise’s Innovate Finance ISA, investors also benefit from tax-free returns. 

Since its inception, CapitalRise seems to be thriving alongside the evolution of the property market, with the last annual report pointing to lucrative developments in the company’s initial year of operation. CapitalRise also lists its past projects and the respective loan-to-value ratio for each project on its website.

Key Takeaways

  • High-end property investment for as low as £1,000
  • A strict selection process ensures only top-grade investment opportunities 
  • The Innovate Finance ISA offers tax-free returns of 8-10% annually

How CapitalRise Works

CapitalRise offers investors investment exposure to prime real estate developments across some of the most lucrative areas of London. A key reason why CapitalRise is so captivating is its Innovate Finance ISA - offering tax-free returns for investors.

The ISA is quick and easy to set up and gives investors priority for newly launched opportunities. The ISA can either be funded through an annual allowance of up to £20,000, or funds can be transferred from any existing ISA to CapitalRise.

CapitalRise only works with the finest projects, so due diligence in the selection of projects is paramount. The company claim to rigorously select only the best investment opportunities. 

You can invest in the available projects via the platform for as little as £1,000, but only accredited investors will be accepted, so you must meet the UK accreditation criteria. Real estate developers can also apply for funding.

CapitalRise Returns & Fees

Out of an emerging bed of real estate crowdfunding platforms, CapitalRise offers an impressive potential return of 8-12% annually. More so, investors aren’t directly charged any fees along the way. Coupled with the Innovative Finance ISA on offer, costs and hidden fees remain almost nonexistent.

You can track the performance of your investment through the personal account portal, where you’ll be able to keep track of how much invested, current earnings, and forecasted earnings.

Remember though, CapitalRise will only accept eligible UK investors for project opportunities. Although information surrounding defaults seems sparse, CapitalRise notifies investors through dedicated meetings, whereby a ‘best course of action’ will be recommended.

CapitalRise Management

The company founders are well-established professionals in leading fields; stretching the realms of marketing, fintech, finance and real estate.

Uma Rajah, Co-Founder and CEO, brings over 10 years of fintech experience with over 25 years as a driving force for leading companies like Wonga.com and Mars Group. Alex Michelin again brings over 20 years of prime investment value to the CapitalRise team, and Andrew Dunn, the third Co-Founder, has been working in residential development for around 19 years. 

Behind the face of CapitalRise is a community-driven force. The platform was funded through the equity crowdfunding hub Seedrs. Organically grown straight from the P2P Lending community, CapitalRise’s 615 investors raised a total of £2.3M on a target of £1M, 160% overfunded and one of the top 10 Seedrs campaigns in 2019. 

Special Considerations

Looking at the most recent accounts, CapitalRise grew lending volumes by 38% and returned £36M to investors over 2021, also helping cement an average return rate of 8.7% - currently with no losses or defaults. As well as securing £1M from prominent venture capital firm Revolt Ventures in 2020, CapitalRise gained a £72M funding line in 2021, with a further line secured in August this year.

Always remember that any branch of investment carries with it a certain level of risk. CapitalRise is not responsible for any losses on capital, neither is your investment protected.