A property start-up has abruptly pulled the plug on its crowd-funding campaign with one month to go.
Last night, Ideal Flatmate told its would-be investors that it had cancelled its Seedrs campaign, thanking them for their declarations of interest.
Founder Tom Gatzen said: “Over the past month we have changed our business and fundraising strategy, meaning the valuation for new investors is now lower than that which was displayed on our campaign page.”
Ideal Flatmate was founded some two years ago by graduates Gatzen and Rob Imonikhe, and its Seedrs campaign had appeared to be successful.
Pre-launching its campaign in August, Ideal Flatmate said it had already received over £750,000 in pre-commitments.
Last month it said it had raised some 75% of its £1.3m target. It valued the business at £6.5m.
The business claims to use algorithms to match flatmates with each other by asking questions about lifestyle and living habits.
It said in its pitch that it plans to be the biggest flat-sharing site in the UK, with ambitions to expand overseas – both in Europe and the US.
Yesterday evening the site said that 1,925 rooms were listed on it within the last seven days. There was no sign of its crowd-funding campaign on Seedrs.