Nested offers vendors a guaranteed sale of their property within 90 days and was the brainchild of entrepreneur and CEO Matt Robinson, who also co-founded the payment company GoCardless.
The four-month-old proptech company secured the investment from backers Passion Capital, GFC and prominent angel investors during its latest fundraising round.
Nested has targeted 100 sales a month and offers all the services of a traditional agent, including valuation, marketing and sales service on any residential property.
Its USP is that it guarantees to sell for 95-98% of market value within 90 days or it will give the homeowner the money themselves, while if it achieves a higher sales price before or after the 90-day window, the profit is split up 70/30 in favour of the seller.
“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,” said Matt.
“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.
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“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 provides an instant online valuation for a property based on a combination of publicly available data, information entered by the homeowner and an internal algorithm.
If Nested does not sell the property after 90 days, it will take on a first charge mortgage and transfer the cash to the owner with the remainder paid to Nested when the property sells.
“In today’s market, it has become almost impossible to buy and sell at the same time,” Matt added.
“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.”
Robert Dighero, founding partner of investor Passion Capital, felt that consumers had 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."