Shared 18 September, 2023
According to INSEE (the French National Institute of Statistics and Economic Studies), real estate accounts for 62% of the wealth of the French population. However, this real estate wealth is not very liquid. In a context where banks are less willing to lend, Hyppo wants to enable French citizens to leverage this wealth as a financing solution for other projects, such as buying a second home, purchasing property abroad, or undertaking energy-efficient renovation projects. In practical terms, the startup aims to offer property owners the option to re-borrow against their owned real estate.
Founded in 2023 by Florent de Rocca-Serra and Jonathan Landman, Hyppo leverages digital technology and artificial intelligence to democratize access to these complex and relatively unknown financing solutions. The two co-founders have surrounded themselves with real estate and financial engineering professionals to develop innovative solutions and distribute mortgage products in collaboration with banking partners. “We want to change property owners’ perspective on their real estate assets,” says Florent de Rocca-Serra, CEO and co-founder of Hyppo.
Hyppo focuses on the French market
“While using one’s real estate assets for financing is common in several European countries like Germany and the Benelux countries, it is still underdeveloped in France. With Hyppo, we want to make French real estate more liquid and offer a more strategic approach to real estate management,” explains Jonathan Landman, co-founder of Hyppo. The startup is currently concentrating on the French market. “France is a deep market and not sufficiently well served,” adds Florent de Rocca-Serra.
When the notion of a mortgage is mentioned, one might quickly think of the 2008 financial crisis, but Florent de Rocca-Serra seeks to provide reassurance. “The French approach is to finance repayment capacity rather than an asset, as is the case in Germany and the Benelux countries. This approach is protective and probably helped avoid the credit bubble and personal tragedies experienced in the US in 2008. The mechanism is useful and virtuous when used wisely. When the risk is well understood, leveraging debt creates value,” he explains.
A first funding round of 3 million euros
Today, Hyppo announces its first funding round of 3 million euros from Otium Capital, following a period of incubation within the Otium startup studio. These funds will primarily be used to expand their team and further develop their technology.
The solution, which was developed last November, is already on the market. “Our goal is to become a leader in this niche in France. In the short term, we want to build a dense network of partners to offer solutions to every type of client. Currently, we operate on a B2C (business-to-consumer) model and act as intermediaries for banking partners who remunerate us based on success,” details Florent de Rocca-Serra.
This article was originally posted in French: Source
*Offer ends on Friday, 7th February.
