6 years ago

StepLadder Raises £1.5M to Help Renters Buy Their First Homes

  • StepLadder, a London-based startup aiming to help renters purchase their first homes, has secured £1.5 million in seed funding

  • The round was led by Spanish banking giant BBVA and fintech VC Anthemis, with early investor Seedcamp also participating

  • StepLadder's collaborative deposit saving platform utilizes a "Rotating Credit and Savings Association" (ROSCA) model, where members contribute monthly and a random draw determines who receives the full pot for their deposit

  • The startup plans to use the funding to further develop its platform and expand internationally

  • In addition to the ROSCA model, StepLadder provides members with access to services like mortgage brokers, lending banks, surveyors, and insurance providers, generating revenue through fees or commissions from these partners and a small monthly fee from members.

      • ProblemFinancial Services

      "It's really difficult to get on the property ladder, especially for first-time buyers. Home ownership rates amongst 25 to 34-years-olds have collapsed, with around 250,000 fewer first-time buyers every year, for over a decade, in the U.K. alone. Raising the deposit is the biggest hurdle."

      Solution

      "StepLadder is a collaborative deposit saving platform that uses a financial model known as a "Rotating Credit and Savings Association" (ROSCA). Members contribute an identical amount on a monthly basis and a random draw takes place each month, with the winner receiving that month's full pot to use towards their deposit. This allows members to save for their deposit 45% faster."

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