New financing for home capital

The Munich-based start-up buys parts of real estate. Now Vereinigte Volksbank is investing in the company.

The start-up Heimkapital has raised around ten million euros in capital, according to Finance Forward reports. Volksbank invested together with Amavi Capital and the fintech fund Ilavska Vuillermoz Capital. The existing investor Yabeo, which also has a stake in Solaris, also invested again. Heimkapital only received 300 million euros in January of this year.

Julia Schabert, Dimitrij Miller and Benedikt Wenninger founded Heimkapital in 2019. The Munich-based start-up focuses on the partial purchase of properties. While property owners are still living in their homes, they can already sell up to 50% of their house to the start-up and then receive the sales amount. In return, Heimkapital becomes a shareholder in the property.

According to Finance Forward, the business model has already been criticized by the consumer advice center. It is often cheaper for senior citizens to get a loan from the bank. "We're very transparent and we talk to our customers if a loan from their own bank is more suitable for them, for example if they are a teacher couple with a good pension," Miller told Finance Forward. This is often not the case for Heimkapital customers, he added. According to founder Miller, the start-up's model is more flexible than loans. Customers also have the option of buying back their property.