A new property firm has raised an unprecedented £9.1m via crowdfunding within its first 48 hours.
The business is a crowdfunding consultancy called Property Pitch Perfect (PPP).
It says the UK’s “lucrative homes market is nowhere near its full potential” and slates both new entrants and established firms for their efforts.
PPP is particularly critical of mutual firm OnTheMarket, saying it would have done much better to have gone down the crowdfunding route.
“It should not have relied on estate agents,” it says.
It describes Knight Frank’s equity partnership model as “frankly broke”.
It also adds: “Where are Spicerhaart, Romans and Belvoir in all of this?”
PPP’s pitch says it has been set up to help property companies – it cites online estate agents and auctioneers, new portals, proptech companies and others – get the most out of their own crowdfunding campaigns.
By last night PPP had attracted 1,241 investors with its promise to “disrupt the UK residential property market”.
One investor has put in £500,000 and five others have staked £250,000 apiece.
A spokesperson for the crowdfunding firm told Eye: “This is an extraordinary achievement, but we are not altogether surprised.
“We have had some big success stories with property firms raising money via our platform.”
Property Pitch Perfect, which is based in London’s Tech City, is aiming to raise a total of £50m in exchange for a 1.4% equity stake, and has 44 days left in which to hit its target.
It says in its pitch: “There has not so far been a single property company which has yet fully leveraged crowdfunding.”
Referencing some recent crowdfunding rounds, it says that hybrid and online agents in particular could have achieved six to seven times the amount they actually did.
It also criticises property firms that have used crowdfunding for failing to use techniques such as growth hacking, guerilla marketing, social metrics, virality, and online ecosystems.
The firm says in its own pitch: “There is a huge appetite for all things property in the UK. Property firms are ideally placed to exploit this to the limit. But none has yet done so. Put simply, we will write their pitches and offer a full suite of marketing services.
“We can help literally any property firm get the most possible money out of crowdfunding.”
Eye asked for clarification.
A spokesperson for PPP told us this morning: “Yes, we fully believe we could help any property company get maximum funding – hence all the excitement among the crowdfunding community and the desire of investors to get a slice of the action.
“The only type of business we might struggle with is one that is open for business from 8am or 9am, works six or seven days a week, does viewings out of hours, and progresses sales – that sort of thing.
“We’re not totally sure what value we could add.”
When we last looked, it appeared that PPP’s pitch is likely to get to target by noon today.
Just the one comment to note…
“We can help literally any property firm get the most possible money out of crowdfunding.”
No point in them or any like minded crowdfunding venture talking about the client? Of course not…. it’s not about the client or estate agent, it’s flies round a perceived honeypot…. roll up, invest, cash in if you can!
Huge PR effort here from those behind the fundraising effort but no just no interest in the real UK Estate Agency industry.
Thank G@d OnTheMarket.com HAS arrived!
Yet another reason folks to get on board with OnTheMarket! No point waiting when we see yet another fast-buck venture bunny bouncing on the scene!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The big concern has to be what they intend to do with the cash, if you read Avril d’Poisson’s comment on the pitch she suggests Ian and the core 6 have done a back room deal and have flogged off the AM project to a consortium of Simon Shinerock, Alex Chesterman, Russell Quirk and Adam Day.
I am sure there is more to this than meets the EYE!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Come on… spill the beans… ‘fess up – at what time between 6.59 and 7.14 did the penny actually drop, GPL? ;o)
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Real Agent saved him at 7:12!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Only because I thought there would be a prize!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I think we have to perhaps take notice of the date with this article!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Shssssssssh…. you mean the day after 31st March?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That very day GPL
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
There goes my OnTheMarket.com has just bought The Moon story… and they were going to project their Bullseye Logo on it 24hrs a day so everyone in The World could see it!
I’ll save it for tomorrow then.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hats off to Ros, she’s good!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Don’t knock you Moon story GPL, most of your stories are way more far fetched than that!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Will they crowd fund robots?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Nice to see you’ve found a meaningful use for your Marketing Minion, Mr Quirk – shoved in a cr@ppy robot suit where his mechanical thinking is perfectly at home.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hee hee….. Like it 😉
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I hear all agencies who join the movement get 20% bigger FS Boards and longer tapes to have more impact when selling homes. Well those who join up this morning only 🙂
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes, you are right….I also noted those great additional benefits. It’s the Gold investment membership you are referring to. It is only open until 5pm today. Silver only available tomorrow and bronze finishes on Good Friday.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
But don’t worry – there’ll be another set of deals starting Monday… ;o)
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
April fools!!!!!!!!!!!!!! but who?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register