They launched a startup for young people to be owners. They pocket 15 M€


Are you young and full of good intentions to build your future? Thin ! Missed. It would have taken a little more than that. A little more in the eyes of the bank to grant you a mortgage. It must be said that everything is more complicated today: the prices of goods are increasing, the levels of contributions requested too, the conditions for borrowing are tightening… enough to leave many people renting and for a long time.

In a financing round of 15 million euros, the small world of French Tech looked up to Virgil, a startup born in 2019 in France and aiming big. Its objective: to provide financial assistance to young working people to give them access to property. The model combines financial contribution and part in the resale. Virgil wants to be able to get his investment back by getting 15% back from every house sale. Or 10 years maximum after the purchase. For other competing startups, the solution is rather to buy goods together, like what Bricks offers.

She tackles heavy. According to the real estate loan broker Empruntis, the average level of personal contribution increased by 4.6% over one year to 68,448 euros. In 2011, according to Century 21, it was only 43,000 euros to obtain a loan of 205,000 euros. As a result, it is difficult to find owners under the age of 35. The median age of buyers is 37 years old according to Notaries in France and up to 39 years old in Paris or even 40 years old in Caen.

“It is not a loan, but a capital”

The tickets offered so that young workers can have a sufficient contribution are quite significant – Virgil speaking of envelopes up to 100,000 euros. A follow-up for each purchase will be carried out by employees to support each new owner, say its co-founders. But it is above all in terms of volumes that the objectives are important. The startup ultimately wants to finance 50 million euros per month.

In three years, when interest rates were extremely low and it was particularly easy to borrow, Virgil counted 10,000 customers who had gone through its offer since its launch for a borrowed amount of 50 million euros. Except in big cities, going through a purchase rather than a rental for housing generally costs the same price. Consequence according to a study by the FNAIM, “8 out of 10 young people consider becoming a homeowner to be important. Being an owner is still perceived as a more economical scheme for 85% of them”.

So with 15 million additional euros in its reserves, Virgil already says that 7 million will be devoted to investing in the purchases of young assets. Investment funds Alven, LocalGlobe, Evolem and Global Founders Capital participated in this fundraising. A point to note at a time when more and more projects prefer to turn to crowdfunding, where individuals are particularly motivated to invest several million.

Co-founder Saskia Fiszel wanted to point out an important detail according to her. To distinguish Virgil from more traditional bank assistance, you should know that he “It’s not a loan, it’s capital. The young person no longer has to give up a location or a larger area”. Regarding the general conditions, she preferred to reassure: “we have no right of inspection on the work or on the moment of resale”. That said, the owner will have to take into account the time before which he will have to resell the house (10 years maximum). If the owner wishes to keep it, then he will have to buy out Virgil’s shares – which will therefore be 15% on the house.

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