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.
Comments (4)
Rather better that they have adjusted the valuation and pulled the fundraising instead of investors finding out after the event that the company is not worth its supposed ‘valuation’. It has happened – not naming any names of course…
Mr “I definitely never said online agents would take 50% of the market” – is that close ?
Yes, embarrassing and amateur but not the first business on the crowdfunding sites to have to lower its valuation. I wonder what advice Seedrs gives and if it can be expert in so many sectors?
Or does it hope that the price-insensitive punters invest in what looks shiny and plausible without knowing anything about the sector? Not in this case it seems.
The eMoov episode is appalling on so many levels.
Ideal Flatmate – spareroom and easyroomate have way too much marketshare and need more competition. The rental sharers market is huge and not going anywhere. Plenty of opportunity for this type of business.
Any Eye readers meet their partner through match.com or eharmony? That’s the game ideal Flatmate is in (algorithms replacing chemistry)
“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.”
Heard that somewhere before !!
This time last year saw the collapse of the £100m “valued” Emoov by Quirk . Perhaps he might have done the decent thing too for his Crowdcube investors and pulled it saving them losses knowing that one of his promised investors had fallen off a cliif
Now back on the premises again in estate agency at Keller Williams Just the sort of guy you want “valuing ” your house.He should carry a Gov’t wealth warning .The industry and media seems particularly forgiving