- Received seed investment from a leading European PropTech VC, PiLabs, and participated in its accelerator program.
- Signed a Sole Property Consultant Proposal prepared by International Property Consultancy, Gerald Eve LLP
- Received a Letter of Intent from a regulatory hosting platform to be accepted as an Appointed Representative upon completion of the on-boarding process and signing of the Appointed Representative Agreement.
- UK Regulatory roadmap developed in conjunction with legal counsel Orrick LLP
- Total Amount Raised: US $10,000
- Total Round Size: US $750,000
- Seed :
- Minimum Investment: US $10,000 per investor
- : Preferred Equity
- US $2,250,000 :
Recently there has been a substantial increase in the global interest for digital currencies. This interest and the resulting industry developments have led to increased opportunities for investors to gain exposure to cryptocurrencies as well as giving rise to a new form of fund raising, known as a Security Token Offering*(STO).
However, many tokenholders have become nervous of their vulnerability to excessive volatility in the market, and with few tangible asset underpinning these new currencies, investors do not have sufficient options to secure their wealth against these fluctuations.
PropCoin tokens* will be built upon the Ethereum network and PropCoin aims to create an Anti Money Laundering (AML) and Know-Your-Client (KYC) compliant security token which will be asset-backed through real estate. In return, following a future STO, holders of PropCoin tokens will benefit from both capital growth and rental income, in a similar fashion to a traditional REIT, but with the added benefit of increased liquidity, no minimum investment thresholds and lower overall fees.
The PropCoin token* is envisaged to enable the holder to gain fractional ownership of a property fund which will focus on income-generating real estate assets across a range of sectors and geographies in the UK.
Our plan is to have these investments be professionally managed and advised by our appointed property consultant, Gerald Eve LLP, initially deployed into existing property funds with direct investments to be made subsequently, so that a blended yield can be returned to token holders by way of dividend on a regular basis*.
*PropCoin’s current securities offering is for PROPCOIN LIMITED, the entity, rather than the real estate funds (STO). The Company is NOT offering PropCoin Tokens in this round and does not have plans to issue dividends to investors in the current Reg D offering.
Process: The proceeds raised by PropCoin from the current equity round will be used to develop the platform from which we can deliver a regulatory compliant asset-backed digital security. This includes a technology build-out for receiving, managing, and tracking client investment into the fund as well as further establishing a regulatory framework from which we can launch a globally compliant offering, which offers exposure to commercial real estate.
Benefits: PropCoin aims to enable retail investors to gain direct exposure to institutional-grade, quality real estate deals with much smaller ticket sizes (upwards of $100). Due to the closed-ended nature of the fund, tokenholders will be able to withdraw their funds through a secondary market**, not putting the property strategy under pressure to make forced trades.
**PropCoin’s current securities offering is for PROPCOIN LIMITED, the entity, rather than the real estate funds (STO). At present there is no secondary market or liquidity for the shares that are being sold in this Reg D offering and the company does not plan to list these shares on a national exchange or another secondary market in the foreseeable future.
PropCoin Revenue Model***:
Issuance: The PropCoin tokens will be issued at US$1, will run on the Ethereum protocol and will be compliant with the ERC-20 standard.
Issuance Fee: Upon issuance PropCoin will receive a one-off issuance fee of up to 3% of the NAV. This fee will be used to support the upfront costs of property purchases, legal & compliance costs, and property fund setup costs. All future raises that occur on the platform will also be subject to an issuance fee.
Asset Management Fee: PropCoin will be entitled to receive an asset management fee (AMF). The AMF is based on a percentage of total funds. A 2% fee will be paid to PropCoin over the course of the year and will be used to cover on-going business costs, in a similar fashion to a traditional real estate investment trust.
Performance Fee: PropCoin will receive a 20% performance fee over a hurdle rate of 5% net annual yield, to align the interests of PropCoin with tokenholders.
Development Team Tokens: PropCoin will issue 100% of the tokens to participants in the STO and not retain any tokens for the development team.
Gerald Eve Relationship:
In May 2018, we were delighted that Gerald Eve agreed to advise as PropCoin's property consultants, working in partnership with us to deliver value to future tokenholders. Gerald Eve LLP is a firm of international property consultants based in the UK. They operate from a network of nine offices and an international alliance of independent real estate advisers covering Europe, India, and Major North American markets.
Gerald Eve plans to continue to help us develop a coherent future property investment strategy for STO funds, and also assist in the management of the life-cycle of the fund when operational.
***The Company is currently pre-product and pre-revenue. The business plan reflects management’s current views with respect to future events based on information currently available and is subject to risks and uncertainties. The business plan is meant for illustrative purposes and does not represent guarantees of future results, levels of activity, performance, or achievements.
PropCoin was founded in mid-2017 when our CEO, Peter Bird, spotted a gap in the cryptocurrency market for a token that displayed more stable and secure characteristics than other products. Having spotted a significant customer pain point of excessive volatility in cryptocurrency markets, Peter formed a team of co-founders that had the knowledge, experience, and vision to create a token platform that could mitigate against this volatility.
PropCoin's mission is to create a tokenised real estate fund which will firstly be UK centric, with future funds being established across Europe, USA, and Asia. The PropCoin team aims to create an interactive platform which enables investors to gain security and stability through fractional ownership of the overall larger fund. In order to do this, the team has recognised from day one that adhering to financial regulation is key to a successful launch. This mission has started to become validated through the rise of various stable coins that claim to offer a way to access stability.
Frequently Asked Questions
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by PropCoin. Once PropCoin accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to PropCoin in exchange for your securities. At that point, you will be a proud owner in PropCoin.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because PropCoin is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.
Currently there is no market or liquidity for these securities. Right now PropCoin does not plan to list these securities on a national exchange or another secondary market. At some point PropCoin may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when PropCoin either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is PropCoin's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in PropCoin’s profile.