Chain-breaking proptech firm Nested, offers vendors a guaranteed sale of their property within 90 days, has secured £8m in its latest round of fundraising.
The start-up, which has been trading for just four months, was founded by established entrepreneur, Matt Robinson, who previously co-founded successful online payment company, GoCardless.
Nested offers all of the services of a traditional agent, but with more benefits. Not only do they provide a valuation, marketing and sales service on any residential property; however, unlike any other agent, they guarantee to sell for 95-98% of market value within 90 days, or they will give the home-owner the money themselves.
If Nested achieves a higher sale price, either before or after the 90 day window, the profit is split up to 70/30 in favour of the vendor. The entire process is designed to be as quick and convenient as possible for the vendor, with time-consuming background checks and conveyancing searches beginning on the day of appointment.
Matt Robinson, CEO of Nested, said: “With property transactions in London down by 32% this year, vendors are understandably frustrated and are increasingly attracted to the certainty and security that a guaranteed sale provides. Our ability to secure millions of pounds worth of funding just months after starting reflects the high demand among consumers and the recognition that this sector sorely needs to innovate. After just four months we are processing five sales a month, and have demand for far more – I see no impediment to us doing 100 sales per month or more by the end of the year.”
Nested works by providing an instant online valuation for a property based on a combination of publicly available data, information entered by the homeowner, and an internal algorithm. Nested will guarantee to sell for 95-98% of this valuation (dependent on area and property type) in return for a 2.5% (+VAT) sales fee. Nested will then strive to achieve the best possible market price and will split any extra 70/30 in favour of the vendor. This ensures that both parties are incentivised to secure the highest possible value.
If the property has not sold after 90 days, Nested will take on a first charge mortgage on the property and transfer the cash to the owner, with the remainder to be paid to Nested when the property sells.
Robinson added: “In today’s market, it has become almost impossible to buy and sell at the same time. With one in three transactions falling through, sellers are reluctant to accept offers from buyers in a chain, and when they do, the whole chain is at risk of falling through. People regularly miss out on their dream-home or waste months stuck in limbo as a result and we are passionate about solving this important problem for UK homeowners.”
The £8m in funding comes from investors including Passion Capital and GFC, who have an established reputation for investing in fast-growing tech start-ups. Other prominent investors include Tim Bunting, a partner at Balderton Capital, who backed GoCardless and is investing in Nested a personal capacity. The investment is led by Passion, headed up by founding partner Robert Dighero.
Robert Dighero, Passion Capital, said: “Consumers have been crying out for a solution to the pain caused by property chains. The success which Nested has already seen in just four months is testament to the combination of a great solution to a real, burning problem and Matt and the team’s drive and ambition – something we have already seen at GoCardless. We believe they are transforming the way property is bought and sold and are proud to support them on the journey.”