The property portal that bans agents but allows developers and private sellers to list free is being wooed by a mystery partner.
As a result, the iProperty Company has pulled an existing crowdfunding campaign which raised £310,000.
It has now re-listed, with a lower valuation of the company, and seeking to raise £200,000 rather than the original £500,000. That amount would have given investors a 6.25% stake in the company.
Its new valuation in its re-listed pitch is for half the £8m original valuation.
John Candia, CEO of iProperty, told Eye: ‘We are currently raising funds via traditional venture capital firms and crowdfunding with Seedrs.
“There is one particular organisation which we are very keen to partner with as it could bring incredible added value to our company.
“However, the structure of that deal is based on a valuation of £4m.
“For this reason we have re-listed with Seedrs with the lower valuation to bring it into line with our external fundraising. We can’t have two different valuations.
‘This new deal also means that we are unable to offer as much through Seedrs as we did in our first campaign, so despite having over £320,000 committed we now have only £200,000 available via crowdfunding.
“We gave all existing investors seven days to re-invest before the new offer went public as we thought this was only fair, and the reason why we didn’t announce our plans until now.
“Once we are in a position to disclose more, it will be immediately obvious why this is a good deal for us, our users and investors.”
Comments (4)
I like this website very much, I believe I was one of the very early customers at the ‘old place’ and I admire the content Ros provides us to have a chew over and enjoy all the views and banter the posters can muster………….but, Ros, PLEASE stop calling this rarely visited, miserable, drab, pointless site stuffed with not much but unsold Wimpey stock a site that ‘Bans Agents’
I once got banned from a pub that I liked a lot, my mates went there, the girls were pretty, it was packed every weekend but I made a bit of a berk of myself one night and chinned a mate of mine, who chinned me back, it all got a bit daft and I (in fact both my mate and I) missed a month of our mates and pretty girls and we had to apologise prefuseley to Mike the landlord before being ‘un banned’ Point is we wanted to be there, you cant ban someone from somewhere they have never been or wish to go.
Anyway, on the bright side only one comment of any meaning from Trevor suggests no one cares much, time for this Iproperty chap to give up on the press releases – Jonnie
I disagree Jonnie, I am glad Ros has covered this story and we have been given so much detail, it has enabled me to work out their angle, the USP they are aiming for and everything I need to know to provide Agents with a defence ( not that one is needed)
The banning agents bit isn’t real, it is a clever marketing bod looking at the audience and flipping a negative into a positive. Agents won’t use us so let’s get the upper hand and ban them! Brilliant that will be £5k please! How do we get some publicity? We do a Miley! do or say something that makes no sense at all but is done or said just to get people talking.
Just have a little think back over all the stories you have read and made comment on which were just like this one; Ask the home search, Property places and all of the big money big mouth ventures that have ended up how? Which one of the celebrity names have made a fortune from their ventures, some aren’t even celebrities anymore!
It is coming up a year since we first heard about how this was going to move and shake the industry but rather strangely they are still looking for money. What sort of business plan requires 11 months to convince people to invest? Why if it is such a winner do they need investment? Why do they want to share the profits? Deep down it is a not very good idea but have to convince others it is. Even £1000 of crowd fund investment is £1000 they don’t have to give back after 14 days, it is their to do as they wish. Even if the never list a property they can make money out of the idea simply by tucking up an idiot! These stories are all part of that process.
I had an £11,000 lesson in advanced spivery and charlataning last summer so I know how this works!
Good luck to their new partner!!!! Pffffft, snigger!
Sorry forgot to add the bit that makes me a credible in High net worth circles.
Robert May C.P.C. xFNAEA CEO of BoardHousewise.com
Well reported Ros. It shows that the industry is wary of some new proptech models that maybe breach the need for redress.
The model claims to be outside redress which is one hell of a big question mark investors no doubt considered.