Broker raises money through crowdfunding

Mortgage startup Hero Broker has begun a crowd-sourced funding campaign following the recent fundraising success of digital lender Xinja.

It is the only mortgage company so far that has tried to raise funds through crowd-sourced funding since ASIC licensed seven companies in January to provide CSF services.

Founder Clint Howen told Australian Broker that the company will use the funds to strengthen its business and accelerate growth.

“We have hit a chord with particular demographic segments that are not being served by current broker groups, and we believe there’s a huge opportunity there.”

The platform launched last year promising borrowers access to the complete home loan application process.

Howen said the company has seen strong interest from other mortgage brokers, and he expects them to actively participate in the crowdfunding campaign.

“I think the mentality is, hedge your bet. It’s better to be onboard any disruption than to sit on the sidelines.”

He said he has received many private messages of support and interest from brokers.“I think many brokers understand that there is a growing trend of consumers wanting more options,” he said. “They understand this more than anyone.”

Howen said that while other platforms such as Uno and Lendi have had a lot of success with their online model, Hero Broker is the first to open up the opportunity for investment from the general public.

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Source: Broker raises money through crowdfunding – AustralianBroker