EYE NEWSFLASH: Quirk speaks about money problems at Emoov and being ‘let down’ by some large shareholders

An explosive new video just released has Emoov founder Russell Quirk speaking honestly about the difficulties facing the business.

Interviewed by Graham Lock – himself a former online agent, who co-founded House Network – Quirk reveals that the merger with Tepilo back in June was a deal “constructed around a certain amount of money coming in on the Tepilo side”.

Quirk continues: “That money has not been forthcoming . . . We don’t have the money that was pledged.”

Quirk also talks of being let down by some large shareholders and says the business could face a bleak or uncertain future, and could come to a “hard stop”.

He said that he had expected online agents to have around 35% market share by now . . . “but we are still ten years away from that”. He adds that he does not think that Purplebricks will achieve 30% of the total UK market in its current form.

Quirk says that the £895 now charged by Emoov is “too low” to be sustainable.

He talks about the pain of fund raising over the last nine years.

The video is here:

 

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50 Comments

  1. FlyingSheep54

    Emoov let down by shareholders

     

    Rearrange these words

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    1. Homestead38

      as are the staff and customers which unsurprisingly didn’t get a mention

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    2. JoshShinerock63

      Imagine working for Emoov and listening to this.

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  2. Herb

    Ha ha ha

     

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  3. Anthony

    needs to sell more houses

     

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  4. mark_one

    So 9 years without profit. He did well to go this long..

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  5. smile please

    Showing his true colours when he knows he cannot get anymore from the well.

    How about him letting down shareholders, and not doing his research so he was able to back his claims (which we all knew was BS).

    Anyone else remember him boasting he got his own staff and their families to invest in this car crash of a business (business in the very loosest term). – They probably cannot afford to lose the money the institutional investors have.

     

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    1. Robert May

      Rainman recall

      “Most humbling are those close to me, such as one of my best friends who has invested £50,000 and my dad and my brother who have invested £10,000 each.

      “When my seven-year old daughter asked me if she could give eMoov her £613 savings, I almost melted.

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      1. ArthurHouse02

        You have to question the ethics of someone who would let his friends and family invest in something that he must have known wasnt going to work.

        Does anyone know how much Russell himself has put in?

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      2. J1

        Melted????

        He should have sunk to his knees and apologised for putting her in that position

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  6. ArthurHouse02

    I’m not being funny, this chap is completely deluded. Why is everything someone elses fault. Emoov was his baby and it was his job to make it work. He has spouted so much rubbish over the years, many investors may feel mislead by his projections and predictions. If Emoov was going to be that successful why did they ever need investors money, why did they need a merge just to gain more market share. What sort of planet is he living on thinking the call centre brigade would have 35% market share by now.

    If he had been more focused on running his business rather than living the high life of the London media machine, perhaps Emoov would have been more successful. The truth is the “celebrity” status went to his head and his eye went off the ball.

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  7. Peter

    “He talks about the pain of fund raising over the last nine years.”

    Kept you in a job though.

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  8. Toddy

    £895 too low to be sustainable and he’s only just figured this out!?

    Expected online agents to have 35% market share by now!? If that is the vision that investors were sold no wonder that the money from large shareholders isn’t forthcoming!

    It is refreshing to hear someone involved in online only agency speaking frankly about it all to be honest.

     

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    1. JoshShinerock63

      it’s only sustainable if your charging upfront and your names purplebricks. 
      If your charging on the back end and your name isn’t purplebricks… well please watch the video. 

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  9. J1

    Unemployable

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  10. J1

    PB share price rocketing on the back of this collapse

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  11. AgentV

    Over the last ten years we have trialed nearly every type of agency possible within our business, at times through necessity. During this time we have learned a great deal, but more than anything else we have learned that what counts most is the best personal service allied to great technology that allows the personal touch.
     
    I truly believe this is the critical thing that local independents can provide better than any ‘Call Centre Lister’. Also, when it is provided in a highly efficient, caring and dedicated manner…the cost to the vendor is little different to the centralised ‘online’ businesses (once you add in all their additional charges). The only thing it won’t ever do is make me extremely rich!!!

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  12. Light

    I wish this was just recorded in a room so we could hear what he’s saying. Instead of having to listen to this guy’s minivan.

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  13. Cyberpunk35

    Audio quality is similar to Emoov’s service.

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  14. GPL

    I’m struggling for the right words here…..

    Lizard? Alligator? ….they have very thick skins.

    A Wooden Plank ….it’s just that.

    Mr Quirk? Amaaaaaaazingly thick skin & it seems as useful as a wooden plank.

    I’m trying not to be overly personal however Russell Quirk has lectured monumentally about Our Industry, the Rise of The Onliners etc etc…. and yet here we are, witnessing the “it wasn’t me, it was the bad boy over there that did it”. If you got shafted Russell it was your fault, you opened the door, you let them in, because you “trusted”? them?? ….you were happy to endlessly spin the waffle yet couldn’t recognise when it was being spun at you? Doh!

    At least be man enough Russell to shoulder your share instead of bleating like a sheep. Your next job should entail you wearing Bright Red Shoes, a Bright Red Nose, White make-up with a Big Sad Face & a Bright Red Wig….. by all means wear your suit, albeit you may wish to consider Bright Red Stripes!

    I cannot muster once single ounce of sympathy …..because you deserve none.

     

     

     

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  15. The Godfather

    Russell Quirk is invariably described as “Marmite”.

    I think this means that one either loves him or hates him.

    Would it be possible please to hear from someone from the “love” camp?

    Everyone on here this morning, indeed everyone that I’ve ever met, is from the other side…..

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  16. AgencyInsider

    Quite extraordinary that the man has the gall to do this video and to pontificate on so many aspects of agency at the precise moment that his own has hit the rocks. Perhaps if he not been such a purveyor of nonsense these past years we might have had some sympathy for his current circumstances. As it is we see him as the author of his own misfortune and he can hardly be surprised that he will receive very little sympathy at all from the agency community that he has spent so much time rubbishing.

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  17. GPL

     
    ……….”a merger deal back in June” ……merging one t*rd with another t*rd?!
     
    I switched off after that because I felt car sick.
     
     

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  18. El Burro

    Let down by others? Nahh chum, they just woke up in a cold sweat one morning and smelt the Americano.

     

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  19. watchdog13

    This is now on Wikipedia as an illustration of a “car crash interview”.

     

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  20. WiltsAgent

    After listening to Russell and other ‘disrupters’ attempt to trash our industry and the service we provide for years on end I have no sympathy for either him or those foolish enough to fund him for 9 years with no return on their investment. Honestly, who are these people prepared to keep handing over their cash for nearly a decade with no hope of ever seeing it again.

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  21. HD23

    Obviously a big ego, and couldn’t back up the claims , don’t think anyone is surprised. Maybe should have spent less time on Talk Radio. Probably going to be the employees that feel this most as some have sunk some serious money into this. He will Probably will end up as the CEO or MD, of another company though after the water passes under the bridge.

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  22. aSalesAgent

    When I read there was an “explosive new video”, I expected to see something inspired by Michael Bay. Disappointed.

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  23. Property Poke In The Eye

    This little **** has misled everybody and should be investigated.

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  24. Vanessa Warwick

    Thanks to all the EYE contributors for the comments and humour – really made me smile! 🙂 Slight tangent – the Car Pool Karaoke segment with James Corden is filmed in a convoy with three cars in front of him and two behind and he also drives at less than 20mph, but this one looks like it was filmed while actually driving along. I see many people filming videos while driving and even broadcasting live on facebook behind the wheel and it is surely highly irresponsible and makes you a danger to other road users, as your attention may not be fully on the road? I commend the creative idea of copying the original format (albeit on an understandably much lower budget) and giving it a property twist, but I do have concerns over the safety of this filming format. Perhaps there is a metaphor in there somewhere?

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    1. J1

      Sorry mum 🙂
       

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    2. smile please

      What’s the matter Vanessa? Upset he is getting more interest than your articles?

      He quite clearly is in control of the car, not holding a camera. No different to talking to a passenger, which of course is what he is doing!

      I assume you sit in silence when in a car?

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      1. Vanessa Warwick

        Yes, in hindsight you are right.  I was being too over-cautious …

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  25. Shaun77

    Interesting – He’s let the cat out of the bag when saying you need to charge half that of the “no sale, no fee” model for a “pay regardless” model. This confirms what we all know, and what he knew, that only about 50% of listings result in an exchange (perhaps a lot less for a passive intermediary). On this basis, he’s been actively promoting a pay regardless model, using slogans such as “Our Local Property Experts Will Sell Your Home”, In the absolute knowledge that half of those that pay will not sell.

    Surely this has to be investigated by someone on the basis of false and misleading advertising?

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  26. sanctuary45

    Fails to mention the hundreds, nay thousands, of house owners that were let down hugely by him and his cronies and left massively out of pocket having paid up front for emoov to sell their home only for it not to be sold……………

     

    Absolutely zero sympathy for the cretin.

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  27. Property Poke In The Eye

    NOTE TO OTHER INVESTORS —–

     

    DO NOT INVEST IN THIS FAILING BUSINESS  OR LISTEN TO THIS **** QUIRK

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  28. Property Poke In The Eye

    The ship is Sinking and probably wants a Job on the board at Countrywide.

    He is lying out of his ****.

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  29. Mark Walker

    “Online agency shocked to learn that other online agency does not make any money either”

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  30. Jonnie

    Right, I might be in for a bit of a slap from some but I’ve had a read of this and watched the film and despite the fact I’ve mocked this bloke on here more than once I feel a bit sad for him, obviously coming to this thread later in the day (Mrs Jonnie is watching something camp about dancing presented by Zoe Ball so ive got to fill the void) I have the advantage of lots of others pointing out the sillyness / gobbyness / failed predictions and general bellendery and frankly I’ve got nothing to add to that. Anyway, back to the point, he gave it a proper go, blagged a hill of cash, burned it, kept going, ignored the reality that it wasn’t going to fly, boshed out press releases at the same rate a geriatric Jack Russell can drain off on the carpet but most of all he believed in it and for that we are in his debt for the masterclass he provided in how not to do it. Jonnie

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    1. Property Poke In The Eye

      Everyone knows how not to do it, even he did.

      The only difference is he misled all the investors as well.  That’s why they not playing ball with him.

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  31. agency negotiation

    In praise of Russell Quirk.

    Much as I detest the business model and everything it stands for, I have to grudgingly admit that Russell was right in trying to create his personal brand. Unfortunately for him, he chose to focus on things that don’t matter. The market, the players, the opportunity. Instead of what does matter. The character, the values and community engagement.

    Every other online/hybrid is making the same mistake. Expect the same result.

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  32. htsnom79

    Agreed, just watched it for the first time in the presence of a hyper 6yr old ( should be in bed I know ) but I’m not feeling the hate for Quirk, gave it a go, in the same position what I’d of burnt cash on is a very expensive NASA moon landing style progression centre, make that mint, we all know a good progressor and appreciate them in a chain, gold standard ( and expensive) sales progression also gives credibility where your opponents are concerned, you may hate them competitively but if you appreciate them once the business is in hand they’re easier to learn to like.

    No onliner has managed this yet.

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  33. frostieclaret87

    Wonder if he had the decency to repay his parents and pal before he  lost the lot?

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    1. Robert May

      Having a little more respect for the shareholders on the board  might have been wise. Keeping quiet right now even more wise; the comments about  having shareholders on the board will sound a klaxon to anyone remotely considering an acquisition

      Reading between the lines it seems Mr Quirk wanted to Mr Desmond ( and everyone else) to fund willy wave off with  Messers Bruce and Woodford, a match he lost in 2015

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  34. Hillofwad71

    Crowdcube Companies like Emoov  seeking funds from the  crowd and  without a Nomad broker  virtually have an open forum to sell themselves on platforms like Crowdcube which was ideal for  the showman Quirk full of spin and candy floss .Caveat Emptor and every  sympathy for the poor saps who put  their hands in their pockets   seeing it unravel  so soon  Anyone asking difficult questions are heavily policed  and removed under “Personal Attacks” Quirk’s responses to
    Questions   For the benefit of current and potential investors… our plans remain focussed on an IPO ultimately. Nothing has changed    SOUNDS AS IF THIS CHANGED RATHER SUDDENLY AS HE CONFIRMED ALREADY BEEN IN DISCUSSIONS WITH FOXTONS  
    Do you have any cashflow docs for the last 6-12 months and projects for the next 6-12 months? Thanks,Kyle 183% VHi Kyle What is it exactly that you’re trying to ascertain? Kastratton oThanks for your prompt response. I was just wanting to look at the businesses recent incoming and outgoing transactions and how you expect them to be in recent future.
    Report emoov 3 months agoHi The detail of that is not something that we would share unfortunately Report NOT SURPRISING HE DIDNT WANT TO FLESH THAT BONE
    Response to valuation in Q1  2019   It’s difficult to put an exact number on this however our expectation, backed up by the AIM broker that we have discussed this with, is circa £120m to £150m. This is not a guarantee. The final number depends upon a variety of considerations around performance, whether the IPO market itself is healthy and of course competitor share price comparatively. It’s important to state though that the IPO is not the ‘final destination’. We would expect that the post-IPO valuation would grow strongly with growth and performance as with Purplebricks, for instance (now at 3x their IPO price.) The management team and board directors will likely not sell shares at IPO and that should encourage others that the value of the business will continue to be built thereafter. Russell He certainly gave this question below a wide berth?   What are the latest revenue figures ? In 2015 in a previous round of funding you forecasted £39m T/O/o for 2018 Is that still on the cards ?What proportion of sellers choose the fixed fee option for sales ? anonymous 3 months ago please reply, i too want to know.
    Report garethedwards 3 months ago It’s in the investor deck they have provided, page 20. They are unequivocally miles off what they said they’d achieve last time around. The latest deck shows that there’s barely been any revenue growth at all, particularly in the last year, and off a very low base. To compare their forecasts based on their 2015 crowdfunding presentation: FY2014 actual £1.32mFY2015 estimate £2.14m FY2015 actual <£1-2mFY2016 estimate £6.63m FY2016 actual <£1-2mFY2017 estimate £15.3m FY2017 actual £2-2.5mFY2018 estimate £39.7m FY2018 actual £2-2.5m (no growth on FY17!) As an investor I am very happy to be shown you can deliver your latest forecasts but a bit more info to back this up would help as we have heard it all before. The updates investors have had over the last three years have all been very positive and puffy, but the bare bones are stark. I think this investment should come good in the end, but I think a bit more transparency in investor updates would be appreciated going forward. In practice this investment despite all the hurrah and valuation increase from £20m to £104m has actually only resulted in a 9.7% CAGR return for 2015 crowdcube investors, compared to almost any other investment metric over the last three years this is poor, for such a high risk investment it’s definitely nothing to write home about. The lack of revenue growth has meant investors have been repeatedly diluted down through cash burn and fundraising. This is not to say eMoov haven’t done a good job building a brand and (expensive) team to take the company forward, they clearly have, and it’s an exciting space to be invested in, but that value has not been recognised yet to any great extent for those who invested in 2015, and I don’t think communications to investors and the market fairly reflect that. On an earlier response on the potential IPO upside, let’s be clear, Purplebricks has returned 3.2x IPO value because they are delivering real and substantive revenue growth and bordering on being a success in three major property markets (US, Aus and UK). From here forward I prefer to be invested in emoov vs PB, and think PB is overvalued at        

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  35. Hillofwad71

    Sounds to me that he has been outmanoeuvred and outflanked by his major shareholders .Quite happy to have let him go and parade about  but now showing who is really calling the shots  when the money finally talks.

    https://www.theguardian.com/media/2018/feb/09/richard-desmond-crude-ruthless-proprietor-express-newspapers

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  36. rsvstu97

    Can’t add to what has already been said. Set yourself up on a pedestal don’t be surprised if people take please in your demise.

    Shareholders didn’t let you down. They had a reality check and realised it wasn’t going to work. End of.

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  37. watchdog13

    Why on earth would Foxtons go anywhere near this business?

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  38. Peanut

    Ego trip!!!!! Oooops!!!!

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