Upvest, Prague’s crowdfunding-focused real estate development platform, has been acquired by Komerční banka

Not to be confused with Berlin-based fintech of the same name, Prague-based Upvest, which helps investors invest in the real estate sector in the form of debt financing, was acquired by long-time backer Komerční banka, i.e. at least 96% of it. The remaining 4% of the company has been sealed off and divided between the original shareholders, CEO David Musil, CTO Petr Volný and his partners, Senator Jan Holásek (yes, you read that right, member of the Senate of the Republic Czech), and Petr Malik.

Both parties declined to comment on the exact figure and terms and conditions, however, Patrik Nový, director of KB SmartSolutions, a division of Komerční banka, and Upvest’s initial investor revealed to CzechCrunch that the deal also included a special clause for the founders Volný and Musil. “The transaction has a multi-year settlement and includes a structure that allows all key parties to be extremely motivated for maximum growth of the startup, i.e. the founders, KB and Upvest employees.”

Founded in 2017, Upvest provides real estate developers with external sources of funding, allowing individuals to invest sums below the industry standard. Simply put: crowdfunding for the development of real estate projects.

Jiří Přibyl, David Musil, Patrik Nový and Petr Volný

By buying out with an 18.9% stake in the company in July 2020 for around €570,000 (at the current market rate), Komerční banka saw such potential, and the business generated by offering Upvest, that a year later they increased this figure to 31.06%. And a year later, it looks like the group grew up carrying pouring glasses of milk, and simply bought the whole cow.

For those of you who are good with numbers, I draw your attention to €570,000 for 18.9% at 2020 rates. I will say no more.

“The acquisition of a majority stake in Upvest represents another big step towards realizing Komerční banka’s vision, which is the development of cooperation with fintechs and innovative start-ups”, commented David Formánek of Komerční banka. . “Our goal is to be able to go beyond the mere provision of banking services. One of the services we focus on in our portfolio is crowdfunding. We are therefore very pleased that within the framework of the cooperation with Upvest, several key points, on the basis of which we decided to enter this segment two years ago, have been confirmed.

Upvest CEO David Musil added: “After more than two years of cooperation, it made sense for both partners to transform Upvest into a full part of the Komerční banking group. Upvest will specialize and develop under the aegis of the leading Czech banking institution belonging to the Societe Generale group.“

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