Blockbuilder embarks on $4m capital raise to expand cashless deposits internationally
Australian tech start-up Blockbuilder has embarked on a $4 million capital raise to expand its cashless deposit solutions into the United Kingdom and United States.
The investment round has been offered first to current shareholders with Correlation Australia Holdings (CAH) which is affiliated with international insurance group Lombard, already committing $2M to lead the round.
Blockbuilder is on a mission to remove cash deposits from life’s biggest purchases and we’ve already seen tremendous success with our initial product offering Downsizer.com,” said CEO and Co-Founder Mark Macduffie.
Downsizer.com uses Blockbuilder’s technology to provide a digital home-buying experience for asset-rich homeowners allowing them to purchase their next property without a cash deposit.
“We sit at the intersection of property and surety bonds which are having a renaissance at the moment because of rising interest rates and the increasing cost of capital.
“We see Downsizer as just the beginning. We’ve started with the world’s biggest asset class – the home or residential property – and we are unlocking the wealthiest generation in history.
“We’re delighted to have CAH follow on as our major investor, they’ve already made a significant investment in Downsizer.com during our 3.75M seed raise earlier this year,” added Macduffie.
CAH focuses on building profitable insurance partnerships with growing entrepreneurial businesses that can distribute insurance products.
“Blockbuilder is offering something new to the market that hasn’t been done before,” said Correlation Australia Holdings’ Director Lance Warner.
“We back great entrepreneurs with innovative products which will be the key to the future of the insurance space and we can see the huge potential in products like Downsizer.com both here in Australia and on the global stage.
“We’re delighted to be with them on the next chapter of their growth journey,” added Warner.
Funds raised during this offer will go towards expanding Blockbuilder’s offering both here in Australia and overseas.
“We’ve just signed an agreement with a global insurer to bring Downsizer into the UK which we’ve identified as being a key market for older homeowners looking to move to smaller property,” said Macduffie.
“More than 9 million homeowners aged 55+ are planning on downsizing in the UK and Australia which has the potential to release trillions of dollars of long held residential property into the market.”
“We’re excited that this capital raise will allow us to take the business to the next level on an international scale,” he added.
“We’re also looking to expand into other cashless deposit solutions for other large ticket purchases such as boats, agriculture equipment and yellow goods for the mining industry.”
