When we announced our initial investment in Proportunity back in October 2019, no one could have predicted the rollercoaster the UK housing market was about to go on. From a complete shutdown in March 2020, when the country went into lockdown…to a flood of activity over the summer, as the UK opened up and the government announced its stamp duty holiday initiative…culminating in an intense rush over the last few months, as many tried to close transactions before the stamp duty holiday ended.
When we first met Proportunity’s co-founders (Vadim and Stefan), their passion, grit and determination gave us the conviction to invest. Those qualities have turned out to be vital; throughout all of the recent uncertainty and volatility the company has shown incredible resilience…not only has it survived, it has gone from strength to strength. At the end of 2020, the company secured its first institutional debt facility from Conister Bank, and today it is announcing the huge achievement of raising a $150 million debt and equity round.
The Proportunity product – a deposit-boosting equity loan enabling First Time Buyers (FTBs) to put down only a 5 per cent deposit – is even more relevant now than when we initially invested. In 2020, 65 per cent of FTBs cited deposits and affordability as the main roadblocks to buying their first home, a statistic that is being exacerbated by rising house prices and stagnating income. Proportunity is fast becoming the preferred option for FTBs to get on the housing ladder – just ask its customers.
It’s an exciting time at Proportunity, as it looks to expand its team in order to support the growth that has been unlocked with this new fundraising round. We cannot wait to see what this next stage holds for Proportunity!