TheHouseShop has opened its doors to investors who are interested in owning a share of the property platform – but has had its £10m valuation challenged.
Co-founders Sebastien Goldenberg and Nick Marr are looking to raise £500,000 via Crowdcube, in a bid to take the company to the next level.
The Crowdcube campaign is currently in ‘private live’ mode, but will be publicly available by tomorrow.
TheHouseShop allows private sellers and landlords to list alongside agents.
Marr said: “Unlike the big agent-only portals, we work with both private individuals and professional estate agents.
“We wanted to make sure that our offering to agents was just as attractive and valuable as our offering to the general public.
“We believe that traditional estate agents still have a crucial role to play in the market and we want to help agents grow their businesses and reach an alternative audience by working with us.
“Unlike many of our competitors, we are all about inclusivity and we don’t exclude any section of the market.”
TheHouseShop brand was launched in 2016, and was previously the Little House Company aimed at private sellers.
Its pitch values itself at £10m, which has been queried on the discussions part of the pitch, where one person has asked: “Can you please explain [how] you have placed a £10m valuation on a business that has a turnover of £180,000 in 2017/18 and created a loss of £700,000.
“That is 55 times turnover, which seems very optimistic.
“On forecast 2018/19 revenue of £240,000, that is 41 times turnover, still quite high.
“Where do you see the growth coming from?”
The response says: “After consulting with our investors and advisors we decided that a £10m pre-funding valuation was both accurate and fair.”
It says that growth will come from the rental market, where it foresees “the number of self-managed properties growing substantially and overtaking the number of agent-managed properties by 2022”.
By yesterday, it had raised about a third of its target, with £164,030 pledged from 12 investors.