eGuarantee raises $5.5 million

Australia-based proptech eGuarantee has raised $5.5 million, with specialist insurance investor Correlation increasing its ownership from 25% to more than 60%.

eGuarantee offers a digital lease bond platform designed to replace traditional bank guarantees for commercial property leases. The company says the value of bonds issued through the platform has grown from $8 million to more than $100 million in under four years, with volumes increasing 338% over the past year.

The new funding will support operational scale, expanded landlord distribution, broader national coverage, and a planned expansion into New Zealand.

“This capital lets us scale fast to meet surging demand. Real estate is a notoriously slow-moving industry but landlords need to move fast to address antiquated bank guarantees. We are introducing Lease Bonds that cut risk for landlords and unlock cash for tenants. Instead of tying up as much as 12 months of rent in a bank guarantee, businesses can redeploy that money and secure a digital bond issued and managed online. We believe the industry is ripe for disruption.” – Stephen Ellis, executive chairman of eGuarantee.

Correlation, which first invested in 2022, now holds a controlling stake. “Correlation has high conviction in the opportunity for Lease Bonds to replace bank guarantees in Australian commercial property. The product just makes sense for landlords and tenants alike. eGuarantee is executing with speed and quality, and we are increasing our stake to a majority position to support the team as they scale and capture this market.” – Lance Warner, managing partner at Correlation.