Whenever the topic of online estate agents comes up in the media, traditional agents write comments saying that the concept will never work – but it’s clear that some big money investors think different. Online estate agent eMoov has just raised an incredible £2.6million through its crowdfunding campaign – almost twice as much as rival easyProperty raised last year in its own crowdfunding effort.
eMoov had set an original target of £1million when the fundraiser on Crowdcube started on September 1, but the campaign was extended an extra week due to “unprecedented levels of interest”. The £1million mark was reached within three weeks. Ultimately total of £2,615,530 was raised from 795 investors, with the largest pledging £575,000. A successful round of fundraising earlier in the year saw £2million invested by venture capital firm Episode 1. Previous investors include former Dragon’s Den presented James Caan.
Founded by outspoken CEO Russell Quirk, eMoov is one of several big names looking to disrupt the notoriously staid estate agency sector through the use of technology and the web. The initial crowdfunding pitch valued the company at £20million, a figure that proved somewhat controversial as critics claimed that current revenues did not warrant such a high figure.
In return, investors will receive an equity stake in the business, with the total funds pledged representing 12.1%of the company. However, the final amount raised may turn out to be less than £2.6million, as there is also a 14-day cooling off period, in which investors can choose to have their money refunded if they decide they no longer want to back the campaign.