Proptech – Startup Hestia raises 1 million euros and attacks property leasing

Hestia, but who is Hestia? A Greek deity? Yes, but that’s not the point. Unless… we develop this parallel a little later in this news. At the Proptech Sector, Hestia is above all a startup that has just raised 1 million euros to develop real estate leasing. An offer that consists of offering a rental with an option to buy. Focus on this young shoot and this new way of making home ownership easier.

Who is Hestia and what does she offer?

Hestia initiation wants to facilitate the acquisition of a home through the leasing of real estate. Leasing, also known as “rent-to-own”, is aimed at potential buyers who have difficulty obtaining a mortgage (insufficient contribution, young workers or self-employed, etc.). To overcome this difficulty, Hestia (as well as all other real estate leasing players) offers private individuals the option to rent a property with an option to buy. Part of the rents will then constitute your future contribution. To be more precise, young proptech is aimed at the so-called difficult buyer candidates: young professionals, modest families, independents, freelancers, entrepreneurs…

Hestia promises this type of buyer to become an owner in less than 3 years, guaranteeing properties at a fixed price, regardless of the volatility of the property market.

Specifically, the startup buys the property of an individual. In exchange, the buyer leases the property with an option to purchase. Each month, part of the rent is converted into savings, which increases the real estate customer’s contribution. The latter can then redeem the property whenever he can and wants to.

Finance the purchase of a house, implement your offer in France and recruit

The title alone summarizes the 3 goals that the startup Hestia has set itself through this €1 million fundraiser. Let’s first mention some investors in this first round: Thierry Vignal, CEO of Masteos; Pierre Chapon, CEO of Pretto; Raphaël Vullierme, CEO of Luko, or even Henri Pagnon of Proprioo. These players are all, more or less, committed to facilitating real estate acquisition and management through digitization.

To return to Hestia, the young shoot intends to use this 1 million to finance, on the one hand, the acquisition of properties (which she will offer for lease to her future buyers). On the other hand, it intends to establish itself in several French cities and, thus, build a team that meets the needs of its future customers. The startup will first offer its solution in Marseille and then in Strasbourg, Montpellier or Nantes in 2023 and will take the opportunity to recruit 5 people. Or talent that will oversee part of your marketing, technology, and sales teams.

Hestia: the offspring of ifunding and startup Flow?

It would be very difficult to assign an exact paternity to the startup Hestia. Let us return first to the name Hestia and its mythological reference. In Greek mythology, Hestia is the symbol of the hearth and sacred fire. First parallel with the startup that wants, after all, to help individuals to find and acquire their home. Furthermore, the Greek deity is the first daughter of Cronos and Rhea – by the way brother and sister, but let’s digress -. For this part we will not make a connection between the goddess’s parents and those of proptech. However, the company’s origins are worth the detour.

Hestia’s offer is very similar to that of Flow, the startup of Adam Neumann, former sulfur head of WeWork. The ofert of this unicorn valued at 1 billion is still unclear, but it is already suspected of taking over the – fallen – bases of coliving… and of depending on real estate leases. Finally, Hestia also reminds us of another real estate concept: ifunding. As a reminder, ifunders offer to advance money to acquiring customers in many ways, this among others through an offer: rental as access to the property.

Without wanting to create controversy, the origins of the proptech Hestia legitimately make us think of the Greek deity. We have the impression that her conception is the result of a union between brothers and sisters who did not know each other. Let’s hope that, unlike its Greek namesake, startup Hestia doesn’t get swallowed up by its father 😉

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