This UK Proptech Startup Just Landed a $260M Deal—Here's Why Hg Invested Big

Jan de Vries · 2026-07-24

Street Group, a Manchester-based company that builds software for the UK residential property market, just secured a massive strategic growth investment from Hg. The deal values the company at over $260 million (roughly £200 million). But this isn't just another funding round. It's a signal that AI is reshaping how real estate agents work, and this startup is leading the charge. ### What Street Group Actually Does Founded in 2015 by siblings Tom and Heather Staff, Street Group (formerly Agent Software) creates an integrated operating system for estate and letting agents. Think of it as the backbone that powers everything from customer relationships to lead generation. Their main products include: - **Street.co.uk** — a core CRM that helps agents manage clients and properties - **Spectre** — a prospecting and lead-generation platform that finds new business opportunities - **Cortex** — an AI-native product that lets agents build and orchestrate their own AI agents It's not just software. It's a complete ecosystem that's deeply embedded in how agents work every day. ### Why Hg Invested Over $260 Million Hg is no small player. With over $110 billion in assets under management and more than 400 employees, the firm invests in European and transatlantic software businesses. Their portfolio includes about 60 companies worth over $190 billion in total enterprise value. Louis Kinsella, Partner at Hg, explained why they chose Street Group: "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 deeply embedded in their daily workflows." He added that Tom and Heather are an "exceptional founding team" who've built something rare—combining genuine product innovation with accelerating growth. ### The AI Advantage Street Group isn't just another proptech company. Their AI-native products, especially Cortex, set them apart. Cortex allows real estate agents to build custom AI agents that automate tasks, analyze data, and improve decision-making. This is crucial because the UK property market is massive. Thousands of estate and letting agency branches rely on Street Group's tools to stay competitive. And as the industry moves away from legacy solutions, Street Group is positioned to capture even more market share. ### What This Means for the Future With this funding, Street Group plans to accelerate product innovation and deepen its AI capabilities. Tom and Heather remain majority controlling shareholders and will continue to lead the business. The company already has over 200 employees and serves thousands of branches across the UK. For US readers, this deal highlights a key trend: European proptech is maturing fast. While the US market has its own giants, companies like Street Group are proving that innovation isn't limited by geography. ### The Bottom Line Street Group's $260 million valuation isn't just about money. It's a vote of confidence in AI-driven real estate software. If you're watching the proptech space, this is one to keep an eye on. And for anyone thinking about starting a company in this space, remember: Street Group started in Manchester, not Silicon Valley. Sometimes the best ideas come from unexpected places.