Justhome, the next generation home financing startup, has raised €3.3 million in a pre-seed funding round led by Target Global.
APX, the Berlin-based early-stage fund backed by Europe’s leading digital publisher Axel Springer and Porsche also participated in the round, alongside a number of industry-leading angel investors.
Launched this year to simplify what can be a confusing and intimidating homebuying process, Justhome is building a digital service to help more people afford a home against a challenging economic backdrop. Home ownership in Germany is the lowest among EU countries, with a rate of approximately 45%. Based on research by the German Economic Institute (IW), Justhome estimates that more than 300,000 first-time prospective homebuyers each year are unable to access the market as property prices have doubled over the last decade. With interest rates tripling over the last 6 months, buying a first family home has become even more difficult. Studies by the German Federal Bank show that this significantly impacts wealth distribution.
The funding will be used to further build out Justhome’s digital home financing platform and develop its own financing solutions. Operating in the German market with a total outstanding mortgage volume of €1.49 trillion, the Berlin-based startup provides aspiring homebuyers with a vastly improved digital customer experience during the mortgage process and the ability to receive pre-approved mortgage options delivered in minutes from more than 700 lenders. This fulfills a growing need in the market where nearly 50% of German mortgage seekers still turn to their local bank for property financing, missing out on the opportunity to compare the best rates available.
Justhome’s vision extends beyond better brokerage, with the company developing its own financing solutions specifically targeted to enable first-time homebuyers to expand their budget and responsibly purchase a property where they otherwise would not have been able to.
The founders bring extensive relevant experience. Co-founder Marc Rustige was previously COO and managing director at Aviv Group, one of the world’s largest operators of online real estate marketplaces. Together with Johannes Fenner, former chief of staff to the CEO of Axel Springer, and technical co-founder Martin Mehlitz, www.justhome.co started operating under a mortgage brokerage license earlier this year and has since grown the team to 15 people.
CEO Johannes Fenner says: “Nine out of 10 Germans below the age of 30 want to own a home in the future, an even stronger trend post-COVID. That’s why we are so determined to provide financial solutions to help this generation become homeowners in a way that is convenient and native to them: digital and self-driven.”
Ricardo Schaefer, Partner at Target Global, added: “We have increasingly observed the global appetite for more customer-centric and innovative home financing solutions. With Justhome, we found an extremely ambitious team that is really looking to shake up the market to address that demand. We are excited to be part of this journey, which has only just begun.”
Source FAKTOR 3 AG