Wannaseed, the early stage investment vehicle for startups, has decided to participate in RealFund, a company that aims to flag real estate projects.
The group of private investors like Business Angel, which specializes in advising startups, has taken a step forward to support RealFund in innovating the service and the outstanding human team involvement in the project, according to the local newspaper MurciaEconomy.
RealFund offers small and medium-sized real estate developers a technological solution to digitize the value of their projects and thus facilitate access to alternative financing, according to the press release.
According to José García Caballero, CEO of the startup and one of Spain’s forerunners of the proptech movement, RealFund will present in Madrid the first project carried out in reforming a property in Barcelona.
The system proposed by RealFund is to symbolize the debt of real estate developers, which can be shared through unique transferable digital assets that allow them to be sold to individuals through what is known as “crowlending” for the funding necessary to carry out the project to obtain.
In this way, RealFund enables investors to ‘Token“Of the debt and the entire rights process is carried out transparently in the blockchain, protecting a digital contract in accordance with the Spanish and European trade laws in force.
With the transfer of the tokens, which are nothing more than the real estate developers’ debts, investors can go to a secondary market for their trade and generate underlying liquidity that enables a quick return on investment.
With this innovative proposal, the Murcian startup has attracted the attention of the network consisting of the CEEIM “European Center for Economy and Innovation of Murcia” and several investors from Murcia-Ban, which will allow it to have a liquid fund to have technological development and programming on the blockchain to cover the associated costs.
According to official information RealFund will run its operations on the Ethereum blockchain to create its own ERC-20 tokens that can be used to token debt from real estate developers.
Wannaseed will also provide funding for the digital marketing of Spanish entrepreneurship. They envision events to promote the company in the coming months in Murcia, where RealFund is based next to Barcelona, Valencia and Seville after its tour of Madrid.
Wannaseed is currently in the phase of recruiting new companies for its support and advice that will enable the successful implementation of new startups in Europe.
According to its website, the call is open until October 30, 2020. This would be the second of its kind this year. The investment vehicle has managed to support such diverse initiatives over the past year, ranging from sport fishing applications to marketing campaigns for startups focused on internationalization.
In its short existence, RealFund has managed to win the first customer from the hand of a real estate developer who has managed to mark the conversion of a property worth around 378,000 euros in the Sants district of Barcelona for 75,000 euros at seven percent quarterly Interest.
With this precedent, the tokenization of real estate assets in Spain is already a reality promising a new secondary market for decentralized securities with great transparency and support in the blockchain, a new successful use case of the blockchain in real life.