Virgil offers a unique concept in France that has already attracted a number of investors. On November 26, the fintech announced that it had raised 2.1 million euros to help young professionals own the property of their dreams and build up their wealth.
Making it easier to obtain a mortgage
Virgil was born of a simple observation: while access to mortgages is not a problem for young people today, property prices are skyrocketing in tense areas, and particularly in Paris, where the price per square meter is so high that first-time buyers cannot afford to buy a home of sufficient size. The price per square meter in Paris has risen by 150% since 2000, while disposable incomes have remained stable overall. As a result, unless they have a substantial downpayment, young working people are forced to make compromises in order to become homeowners, either by buying a smaller property or by moving away from the capital. In some cases, they even have to give up their plans to buy and remain tenants.
The startup provides young people with an equity contribution of between 10% and 20% of the price of the property to top up their mortgage. In exchange, Virgil becomes the owner of a share of the property for up to 10 years. For example, for a 10% equity contribution, the company recovers 15% of the sale price. In all cases, after 10 years, the link with Virgil ceases. The owner must then resell his apartment or buy back his share at the market price.
A fluid, digitalized purchasing path
Fintech doesn't just offer financial support. In fact, it advises future buyers throughout their purchasing process, from visiting the selected property to handing over the keys, to ensure they don't make a bad deal.
The Virgil community now has access to a dynamic tool called "Spoune". Twice a month, customers can receive advice and answers to questions related to asset building.
Target: 5,000 transactions by the end of 2021
On November 26, 2019, Virgil announced a fundraising round of 2.1 million euros. A handful of investors were seduced by the profile of the startup's founders, former executives of OneFineStay, acquired by the Accor group in 2016: the French Alven Capital, the London fund LocalGloble, Xavier Niel's seed fund, Kima Ventures.
The start-up hopes to complete 100 transactions a month by the end of 2020, rising to 5,000 by the end of 2021. Virgil will use this funding to increase the size of its team from 10 to 30 members by the end of 2020. The company will also announce the finalization of three partnerships in Q1 2020.