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Bricksave is a real estate crowdfunding platform that allows people to invest in real estate in different parts of the world with a minimum of US$1,000. Co-founded by Englishman Tom de Lucy and Argentinean Sofía Gancedo, the startup is based in London but targets the Latin American market and began by focusing on Argentina. This month they announced a US$6 million round led by Graphene Ventures, known for early investments in Snapchat and Lyft. Sofía Gancedo, COO of the company, answered Contxto’s questionnaire.
1. What problem does Bricksave solve?
Historically, access to real estate was reserved for those social sectors with significant investment capabilities. But, through our real estate crowdfunding platform, we managed to democratize access to the “brick” so that anyone with a minimum of US$ 1000 can enter, protect their savings and obtain estimated net returns of between 7% and 9% per year. With no previous experience, you can safely invest in residential and finished properties in the most stable cities in the world from anywhere in the world.
2. How is it different from others who have tried this idea before?
After creating Bricksave in 2016 we found ourselves in an unexplored market, which represented a real challenge since we not only had to explain what real estate crowdfunding was all about, but it was also necessary to educate a non-specialized public on finance and generate confidence in potential investors. In this context, we had the support of Kindled Holding, which provided us with the necessary tools to grow in technology and infrastructure, and gave us a global projection that allowed us to distinguish ourselves from other platforms with similar objectives to ours.
3. How do you generate revenue for users?
We use an extremely sophisticated algorithm to search for properties, which permanently monitors different cities taking into account 300 variables. Annually, our team evaluates around 20,000 properties, and only about 1% are approved. Once the property is rented, rental returns are generated and distributed monthly to investors according to the proportion of the property they own. In addition, after four years, or after annual returns exceed 20%, the property is sold, and the final returns and profits are shared among the investors.
4. What company achievement are you most proud of?
If I had to choose, there are two that give me immense satisfaction: first, the organic, progressive, and orderly growth of Bricksave as the result of the great effort of the whole team, which reminds me daily that we are on the right track. And on the other hand, the fact of having helped so many people to protect their savings and find a refuge of value in complicated contexts; makes me personally proud and empowers me to always go for more.
5. What is the company’s next move?
Tokenization, a historic milestone, not only for our company but for the entire real estate market. This technological innovation puts us at the forefront of our industry, as we will be the first company in the world to issue real estate tokens regulated in Switzerland. This will allow purchases to be shared by more people, streamlining the investment process and offering greater flexibility to investors, as well as removing tariff barriers so that they can generate more significant revenues. At the same time, users will have the peace of mind that they are acquiring a fully regulated product in Switzerland, one of the most serious and robust financial jurisdictions in the world. In this way, we will definitely consolidate our presence in Latin America and the world.
Main image: AdobeStock
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