1. Nest Funding
We help home renters become home owners.
One brick at a time.
What do we do?
For renters who don't have a deposit to buy a home,
Nest Funding will help them save one.
Nest Funding enables to invest in their own home, and save up a deposit.
Starting from just 1% of the property value.
Problem
Generation rent can't afford to buy property. They can't
gather the large deposit required, don't have access to
the bank of mum and dad, and live in expensive property
areas where salaries don't provide a large enough
mortgage to buy. They are caught in a cycle of renting.
Property investors are looking for sustainable,
predictable returns in a volatile market. They are looking
for a low risk investment profile, predictable returns, and
flexible liquidity.
Solution
Co-own property for five years
Resident buys small share, from 1%, and is
encouraged to buy more
Resident pays rent on the part they don't own. When
they buy more of the property, their rent reduces
accordingly
Investors receive rental return on their share, capital
growth on subsequent shares the resident buys,
plus capital growth when property is sold
Benefits for investor
Equivalent returns to buy-to-let. Plus competitive
advantage over buy-to-let: Resident finds property. 5
year tenancy = longer certainty of financial returns. And
co-ownership means resident actively maintains
property.
Benefits for resident
Paying rent only on share not owned means more ability
to save. Ability to save deposit through their own home
means savings 'keep up with' property market. Longer
tenancy gives more predictable outgoings, and longed-
for feeling of ownership.
Funding Goals
We require £10m property investment to take this product to market for pilot phase. This
will fund 30 properties.
WE'RE RAISING
£10m
75% London properties
25% Non-London properties
FAQ
What happens after five years?
There are three options. The resident can sell the property - and both parties receive
returns pro rata to their shareholding. The resident can stay for another term, and we
restart for another five year cycle. Or the resident can buy investors out with a
mortgage. A variety of choices where resident is empowered to choose route; but
whichever route is chosen the investor receives his/her returns.
What is the legal structure of the property ownership?
The resident and investor co-own the property as tenants in common. The resident
takes a lease which gives the right to live in the property. The lease agreement is used
to protect the investor's rights as landlord, and the investment.
Financial structure?
The property is owned outright, with no mortgage.
Core Team
Eleanor Bowden
Founder & CEO
Ten years in global corporate business at Unilever &
Blueprint for Better Business
Chief of staff for global division at Unilever
Owned property through private shared ownership
arrangement - this gave her the inspiration for Nest
Funding
Anindya Biswas
Co-Founder & CFO
Consulting career at KPMG & McKinsey
Experience managing multi-million pound property
portfolios
Developed big data social enterprise for Ashoka,
funded by Gates foundation
Qualified CFA and MBA in finance
Welcome to the modern alternative to renting.
We help renters buy their own home. We do this by connecting property investors and residents, creating jointly-owned
properties.
The resident gets their foot on the property ladder in an affordable way, buying from just 1% share.
The property investor gets the same returns as buy to let. Plus a competitive advantage over buy to let because the resident is
taking care of the property.
Our raison d'etre is helping generation rent. We do this because we believe that owning a home is really important, for the
individual, for their local community, and for the wider economy. Home ownership helps the first time buyer worry less about the
future, through financial stability and autonomy over the property they live in. It helps the wider community because the
community engagement is higher in owner occupied areas, and crime is lower. And it helps the wider population because the
credit lines afforded to home owners boost the wider economy.
Welcome to the modern alternative to renting.
Milestones
Nest Funding founded
January 2016
Secured angel funding,
pre-launch
March 2016
Began discussions on
strategic partnership with
one of UK's biggest
institutional investors
May 2016
Gained place on NatWest
startup accelerator
June 2016
Awarded place on
prestigious Mass
Challenge startup
programme
August 2016