How to Raise Capital for a Living Platform

Óscar Raynaud· Head of Living, UrbanPay9 Oct 20265 min

There has rarely been more money looking for living assets. Cushman & Wakefield counted €59 billion invested in European living in 2025, and 96% of the institutional investors it surveyed expect to increase their allocations over the next five years. CBRE reports that living drew €29.9 billion in the first half of 2026, around 26% of all European real estate investment.

That does not make raising capital easy for an operator. Most of that money wants stabilised assets with proven income. This guide covers how to raise capital in the living sector when you are the one who has to prove it.

Know which money you are raising

Operators often mix up two different raises, and investors notice.

Platform money funds the operating company: the team, the brand, the systems and the pipeline. It comes from founders, family offices, angels and sometimes venture funds. It is priced on growth.
Property money funds the buildings, as equity and debt for acquisitions, developments and conversions. It comes from institutional investors, real estate funds and banks. It is priced on income and risk.

A credible plan says how much of each you need, in what order, and who you expect to provide it. Mixing them in one pitch usually means talking to the wrong investor.

Understand how institutions want to deploy

Cushman & Wakefield's survey says joint ventures and stabilised acquisitions will remain the most common routes to market over the next one to three years. It expects forward funding to stay soft except in newer markets. For operators, the joint venture is often the realistic door.

A recent example shows the shape. Colonial and Vita Group set up a 50/50 joint venture in September 2026 for student and flex living in Madrid. It holds more than 2,200 beds with an estimated stabilised value of around €1 billion. The investor brings capital and asset transformation, the operator brings development, marketing and management, and the structure leaves room for third-party capital later. Each side contributes what the other cannot easily buy.

Show investors what they actually check

In the living sector, investors underwrite the operator as much as the building. Expect scrutiny on five things:

Track record: occupancy, average rent, average stay and arrears for every asset you run, ideally over several years.
Unit economics: operating cost per unit, cost per turnover, and the margin at the property level.
Pipeline: signed and probable sites, with realistic timelines.
Team: who runs operations, finance and development, and what happens if a founder steps back.
Data and controls: how rent is collected, reconciled and reported, and how residents are verified.

That fifth point is where operators often lose credibility without realising it. Operational due diligence explains what buyers now look for in the back office.

Match the capital to your stage

Early operators usually fund the platform with founders, angels or family offices, and fund the first buildings through management contracts or leases on someone else's balance sheet. Banks become relevant once assets are stabilised. The Coliving Report 2025 found that banks already provide about 27% of coliving operator funding, and that family offices are proving better partners than venture funds for many operators.

The choice between owning, leasing and managing changes what you need to raise. How to choose an operating model with investors goes through each option.

Prepare a data room that holds up

Before the first meeting, assemble a data room with:

Monthly occupancy, rent roll and arrears by asset, going back at least twelve months.
Collection data showing what was billed, what was collected, when, and through which method.
Operating cost by asset and by category.
Contract templates, resident verification process and compliance policies.
The playbook you use to open a new building.

If producing any of these takes a week of spreadsheet work, fix that first. Investors read a slow data room as a sign of a slow back office.

Where UrbanPay fits

Clean collection data is one of the easiest ways to earn an investor's trust. With UrbanPay, every rent payment is collected by account-to-account transfer and reconciled to the right unit and entity automatically. Residents are verified with KYC and contracts are signed with eIDAS-compliant e-signatures. The history an investor wants to see is already structured, across every building and company you run.

FAQ

What do investors look for in a living sector operator?

A documented track record by asset, sound unit economics, a credible pipeline, a team that does not depend on one person, and reliable data on collection and compliance.

Is a joint venture better than a management contract for an operator?

A joint venture gives the operator a share of the upside and a seat at the table, but it needs co-investment. A management contract needs no capital, but returns are limited to fees and incentives.

When should a living operator approach banks?

Once assets are stabilised with a track record of occupancy and collection. Banks lend against proven income, not plans.

Talk to Óscar

If you run a coliving, flex living or student housing operation and want to see how collection, verification and contract signing fit together on your volumes, book 20 minutes with me or write directly.

Book 20 minutes with Óscar · [email protected] · Contact UrbanPay