Crowdahouse Relaunches with Secured Lending Model
Back in 2012 Crowdahouse created the world’s first crowdfunded property fund – the Crowdahouse Pioneer Fund. This was a truly innovative product allowing anyone to join a crowd and own investment property together.
The only problem was that in 2012, despite confirmation from our compliance advisors, the Financial Services Authority (FSA) wouldn’t tell us whether our crowdfunding model was acceptable to them.
For us, this was a serious issue. My co-founder also ran an FSA-authorised firm and we decided the risk of going to market with our Crowdahouse Pioneer Fund was unacceptable. We wanted to protect our Members’ interests as investors, which would have been impossible.
In September 2012, a Sunday Times feature brought us to the attention of a major international investment bank and so, because of the risks of crowdfunding, we continued working with private investors on our own property projects.