Thomas Schneider, CIO and Co-founder, BrickVest - … Schneider... · an estimated $2.6bn funding...
Transcript of Thomas Schneider, CIO and Co-founder, BrickVest - … Schneider... · an estimated $2.6bn funding...
YOUNG PROFESSIONALS’ 2016“Somewhere in the crowd: Exploring alternative sources of funding”
Thomas Schneider, CIO and Co-founder, BrickVest
June 2016
Are You Personally Invested in Real Estate?
a. Yes
b. No
Pole
Please answer the following question on your dedicated device
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Real Estate Investment Market: How It Currently Works?
Gated Industry leading to unequal access, conflict of interests, lower returns and no transparency
Before Fees
Investable
€100
After Fees
Investable
€80
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Real Estate Crowdfunding
Connecting Investors with Worldwide Investment Opportunities
Retail Investors
Family Offices
Institutional Investors
HNW Individuals
Real Estate
Investments
Worldwide
£Browse Investments
through the platform1Invest in minutes
through a simple and
secure online process2
Track performance
online from the platform
dashboard3
Easy, simple, transparent
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Value Proposition
RE Crowdfunding Platforms benefit both the Investors and the Sponsors
LOWER FEESreduced middlemen generating higher returns
ENHANCED USER EXPERIENCE24/7 access to investments and earnings from the
platform online dashboard
INVESTOR BENEFITS
DIRECT ACCESS to a curated selection of real estate investment
opportunities
DIVERSIFICATION100% customised portfolio diversified by risk,
geography and strategy
SPONSOR BENEFITS
ACCESS TO INNOVATIONBe at the forefront of technological advancements in
Real Estate
DIVERSIFIED SOURCES OF CAPITALless depended on a few main capital providers
REPORTING SERVICESongoing investor reporting
INVESTOR NETWORK EXPANSIONaccess to a large network of investors
BETTER TERMSlower sourcing and administrative costs
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The Real Estate Crowdfunding Scene
Currently there are three main business models for Real Estate Crowdfunding
1. Brokerage Model (connecting people and deals)
2. Investment Management Model (lightly regulated)
3. Investment Management Model (fully-regulated)
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History of Real Estate Crowdfunding
Key events in Real Estate Crowdfunding over time
2010 2014
Apr
2012
Oct
2015
US SEC votes to adopt
Title III of JOBS act (non-
accredited investors)
Real Estate crowdfunding
broke $1bn mark
FundRise / US
(2010)
JOBS act signed in the
US
Sep
2013
JOBS act Title II signed in
the US enabling startups
public fundraising
Apr
2014
FCA PS14/4 on the
regulatory approach to
crowdfunding came into
effect
1 Deal Index 2015 and Preqin 2015
230 Real Estate crowdfunding
Platforms with an estimated
$2.6bn market worlwide1
20152013
Realty Mogul / US
(2012)
IFunding / US
(2012)
RealtyShares / US
(2013)
Property Partner / UK
(2014)
BrickVest / EU
(2014) Property Moose / UK
(2013) Property Crowd / UK
(2013)
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UK Crowdfunding Trading Volume Breakdown
Real Estate is the last to arrive at the party
Source: University of Cambridge, Judge Business School and Nesta, 2015
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Overview of Real Estate Crowdfunding Worldwide
Real Estate Crowdfunding gains momentum
NORTH AMERICA
2015
$1.39bn(54% Global Share)
2014
$566M
EUROPE
2015
$1bn(39% Global Share)
2014
$424M ASIA2015: $180m
(7% Global Share)
2014: $20m
(2% Global Share)
$0m
$500m
$1,000m
$1,500m
$2,000m
$2,500m
$3,000m
$3,500m
$4,000m
20122013
20142015
2016
US Europe Rest of the World
Growth of Global Real Estate Crowdfunding
Exponential growth over the last four years from $19.1m (2012) to
an estimated $2.6bn funding volume of real estate crowdfunding
platforms in 2015.
$19.1m
$396.4m
$1.0bn
$2.57bn
$3.4bn
Source: Massolution 2015CF Real Estate Crowdfunding Industry Report /
Deal Index 2015 and Preqin 2015
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The Real Estate Crowdfunding Trends
What next developments will affect Real Estate Crowdfunding globally
1. Increased focus on Regulation
2. Technology Disruption: Blockchain
3. Getting the attention of well established
Institutional Real Estate players
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Pole
Please answer the following question on your dedicated device
After this presentation, would you consider investing in Real
Estate via a Crowdfunding platform?
a. Yes
a. No
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Pole
Please answer the following question on your dedicated device
If yes, what would be the main driver for your decision?
a. Liquidity
a. Low minimum amount
b. Transparency
c. Diversification
a. Lower fees
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