THC share offer coming...

I am pleased to announce that we are making a limited number of shares in the House Crowd available to our investors based on the same valuation as we raised funds last October.

For those who are not aware, we started to raise £1M in September 2015 but having raised £628,000 in around 3 weeks, we made the decision to close the fundraising round early as we did not require all the funds at that time.

We intend to do another large fundraise in early 2017 at an increased valuation (level yet to be confirmed) but, before we launch that, we thought it would be good to give our investors the opportunity to participate and acquire the remaining 372 shares we held back last year - at their previous valuation.

So what’s happened since Oct 2015?

I am pleased to say that our revenue for the year ending May 2016 more than doubled from the previous year – something we are very pleased with.

The last 5 months of the financial year was our best period ever – raising over £1.6M a month on average. At this level the company is profitable (which we understand is unusual for a crowdfunding platform at this stage of its development), although as we always stated, we will be using any excess funds to increase marketing activity and accelerate growth.

In particular, since the initial part of this fundraise last October, we have:

* Launched phase one of our new website (after a frustratingly lengthy delay)
* Set up an online affiliate programme which is currently in beta mode – this will be available by the end of the year for select parties including investors and shareholders to earn revenue from
* Significantly strengthened our team by recruiting Bill Anthony as Chairman, Lewis Walters as Head of Finance, Andrew Hall as Head of Development opportunities, Nigel Beverley as a client account manager, and Charles Winstanley as a business development manager (started August 2016).
* Defined our product offering so that it is very clear how we differentiate ourselves from our competition
* Created a new development product that is proving very popular – we currently have over 100 properties in development around the North West
* Refined our marketing processes to reduce our cost per acquisition and increase our average client investment (which now stands at over £18,000)
* Submitted our FCA application for full permissions and are several months into their due diligence process. We expect to be receive full permissions by November at which point we can apply for IFISA management status.
* Acquired FCA approved status for 4 key team members

We are also excited to announce that we have a new Chief Marketing Officer – Paul Stallard - contracted to start with us in October. Paul has previously provided transformational sales and marketing services to over 30 top financial service companies including Hargreaves Lansdowne, BNP Paribas, Deutsche Bank and St James Place.

As you may be aware, several of our direct competitors have done further rounds of fundraising, including Property Partner which has now raised around £19M in total based on a valuation (we believe) of at least £40M.

Other crowdfunding companies have also had significant fundraises:
* Syndicate Room raised £3.1m on a valuation of £25,000,000
* Crowdcube raised over £7M based on a valuation of £65,000,000.

We continue to believe our business model has the potential, when you include the platform fees ongoing revenue from rental and share of profit from the sale of properties attributable to our sister company, HCPM, to be more profitable than any of these companies – not to mention the extra revenue we will generate when we bring the origination of bridging loans in house and automate the processes further with the next phase of the website.

The public and investor interest in the industry is growing all the time and forecasts for the crowdfunding industry as a whole and property crowdfunding in particular remain very positive.

In order to maintain a market leading position, and develop three new products (including an Innovative Finance ISA product), we intend to undertake a further major fundraise (probably via Crowdcube) in early 2017.

We are giving our existing investors the opportunity to invest at the previous 2015 valuation, before we make the offer available to other investors at an increased 2017 valuation (which has yet to be confirmed but will be significantly higher).

Please click here to access the existing shareholder investor pack which includes
* An investor deck created in advance of the main fund raise (containing a company update and the business plan/investment proposal)
* An information memorandum (detailing all the legal stuff – boring but important so please make sure you read it)
* Draft accounts for the year ending May 2016
* Full Cashflow Projections and financial assumptions
* A Share Application Form

If you would like to apply for shares please complete the Share Application Form in the dropbox folder and return to myself, C******* H***, at c*******@thehousecrowd.com. Do not send any funds at this stage. Please wait for your allocation to be confirmed - shares will be allocated on or before 19th October. If you have any questions regarding this offer, please also email myself on the address above.

This offer shall remain exclusive to our existing investors until 19th September after which time we will make it available to other parties.

Please note that the investor deck is in draft version – it has been created in respect of the 2017 fundraise and therefore some sections, e.g. the section about amount to be raised, should be disregarded as they do not relate to this current 2nd stage of the fundraise started in 2015.