Hg Invests in UK PropTech Leader Street Group

Street Group, a prominent UK PropTech innovator, has secured a significant growth investment from Hg, a leading investor in software and services businesses. This strategic backing propels the Manchester-based company to a valuation exceeding €233.8 million (approximately $273 million USD). The infusion of capital is earmarked for accelerating product development and enhancing the company's artificial intelligence capabilities, a core component of its future strategy.

Founded in 2015 by siblings Tom and Heather Staff, who continue to lead as co-CEOs and retain majority control, Street Group has established itself as a key player in the UK residential property market. The company provides an integrated operating system for estate and letting agents, encompassing its core CRM platform, Street.co.uk, the lead generation tool Spectre, and a suite of AI-native products like Cortex. This technology stack aims to modernize workflows for thousands of agency branches across the nation.

The investment from Hg, a firm managing over $110 billion in assets and boasting a portfolio of approximately 60 businesses, signals strong confidence in Street Group's market position and growth trajectory. Hg's extensive experience in scaling software companies, coupled with its deep operational expertise, is expected to be instrumental in Street Group's next phase of expansion. The firm's global reach across Europe and North America also presents potential avenues for future international growth.

Heather and Tom Staff emphasized their shared vision with Hg, stating, "In Hg we have found a partner who shares our long-term ambition, our product focus, and brings genuine depth of experience and operational expertise in scaling software and AI businesses." They highlighted that this partnership will enable further investment in their technology and people, while preserving the customer-centric culture that has defined the company.

Louis Kinsella, Partner at Hg, commented on the strategic fit, noting, "Street is exactly the kind of business we love to back. It’s a category leader with a technical edge, loved by its customers, and is deeply embedded in their daily workflows." He further praised the founding team for their ability to combine product innovation with rapid growth, positioning Street Group favorably as the industry shifts away from legacy systems towards more advanced solutions.

This funding round marks a significant milestone for Street Group, which was previously supported by Manchester-based venture capital firm PXN Group. The company's focus on AI integration within the property sector aligns with broader market trends, where AI adoption is increasingly driving efficiency and innovation across various industries. The PropTech market, in particular, has seen substantial investment as digital transformation continues to reshape real estate operations.