Early Emoov investor Faisal Butt says the firm has increased in value one hundredfold since he took a leap of faith to back it five years ago. However, Butt says his only mistake was not securing more investment for it at the start.
In 2013, Butt says he had a premonition that the property market was about to change.
To broadcast his interest, he wrote a piece called Looking for the next Rightmove, inviting “the crazy ones, the misfits, the rebels, the troublemakers and the round pegs in the square holes” to get in touch.
Through this he met Russell Quirk, and subsequently Butt led the first investment in Emoov, valuing it at the time at £1m.
Last month Emoov acquired Tepilo and Urban, forging what is described as a new £105m entity.
Writing in Management Today, Butt says: “The journey from £1m to £100m has been one hell of a ride, packed full of surprise, suspense, fear and nerve-wrecking danger.
“It has not been a ride for the faint-hearted, but the founder and his team have done a stellar job at maintaining the resolve to get us through to the other side.”
Butt, who has now left the board of Emoov, says that with the benefit of hindsight, the business would have done better to have raised a lot more money early on.
Butt also says that there is a lot of uncertainty in the world of start-ups.
However, he says a multi-pronged approach “has made Emoov a survivor in a sector that has seen and will continue to see many casualties”.
The piece by Butt, who is CEO of Spire Ventures and chairman of PiLabs which ‘incubates’ new proptech firms, is here:
https://www.managementtoday.co.uk/emoov-story-investors-perspective/entrepreneurs/article/1486350
In a fuller piece released by Butt to EYE, he says that neither he nor Quirk knew how big the market could be: Butt says: “When an old industry goes digital, don’t look at what would happen if you only took 5% of the market.
“If you’re transforming the business model, lowering costs, and creating a genuinely improved customer experience, all wrapped up in a brand that you believe consumers will love, you should be aiming for the number one spot.
“Our early conversations with Russell about ‘opportunity size’ were underwhelming.
“Neither of us really knew how big this opportunity would be, and the range discussed was as low as £10m and, when we stretched our imaginations, we talked about creating a £100m business. Neither of us could grasp at the time that this was potentially a £1bn+ opportunity.
“While we didn’t quite know how we would get there, both we and Russell consciously decided from the get go to think big. This was a consumer business, and with a stellar team, and superior tech, the sky was the limit.”
I really dont have a massive issue with Emoov, Russell or their investors, but it is a touch tiresome how wonderful their company is, how they are changing the market, how many casualties their will be etc.
If we are taking 2013 as the starting point, then you should be embarrassed sir. 5 Years and you can’t turn a profit, 5 years and “investors” are still pouring money into this black hole in a vain effort to make it work. After this 5 years, you are still so far behind your main competitor you have had to merge with 2 other failing companies to try and gain some size and market share in order to keep the “investor” money rolling in..
If you had raised more money to start with, you would be in the same position as you are now, just having used a bigger shovel and dug a bigger hole.
Maybe the market will change to support these online only, call centre type agents, but it isnt going to be any time soon. Sure some vendors want a cheap bucket shop style operation, but most want a local, profession way of selling their home with support along the way. Remember, they arent buying a £9 dvd on amazon, this is their £300,000 home and it is just a touch different.
Lastly, as i asked Russell and his followers yesterday, can you please specify exactly what this superior tech is, and how it helps your vendors sell their homes. At this time of posting you have less than 36% of your stock (source zoopla) showing as sold stc/under offer. Not exactly superior!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
An excellent filleting of the story AH02. Calm, measured and factual. There are some on PIE who could learn a lot from you.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Except you used the old measure of making a profit. Profit is old school. You just need a very good pied piper.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Faisel butt also went back to work a few hours after his baby was born according to a day in the life business piece. What a legend
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“I really dont have a massive issue with Emoov, Russell or their investors”
Three years ago you wouldn’t have been saying that, I’d wager, AH02. Three years ago The Quirkster was everywhere, omitting toxic anti-‘traditional’ agency ******** from every orifice at a higher rate than energy is expelled from a quasar.
For that – you’ve got to credit him for having the neck of a tower of giraffes. Like it or not – he was a fountain of self-publicity.
He led the way in that respect – and in many others… and others, seeing the effect he was having, followed.
He pricked up my ears to much of what I now campaign against. He was instrumental in the formation of a lasting bond between like-minded individuals who simply want to see a fair and honest industry that the public can trust, for the benefit of everyone.
For that – I give him thanks.
Most of all – he reacted to being constantly spotlit under the Super Trooper and backed down from the *********** (credit: Jonnie).
For that – I give him credit where due.
Yes – the ******** quasar can still flare up occasionally. Yes – there is still some occasional ‘interesting’ activity on his listings. Yes – he still stands for everything that I and others believe is trying to lead our industry down a rocky path to nowhere…
…but now he has three times the 5h!t to answer for – so I reckon he’ll be well out of the way fighting his own fires so that we can eat our own elephants in peace.
Hey – he might even fancy joining in.
After all – no-one better to become a Gamekeeper than a world-beating poacher…
…and he knows where I am when the time is right!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
When a small local independent can have new systems and software to better any ‘call centre lister’ on selling as well as fees, whilst at the same time delivering a much higher personalised service……how can it possibly be claimed the call centre lister tech is superior?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is all for further investment, more spin, more noise.
The back of the fag packet valuation of £100m is actually comical… I would love for Faisal or in fact anyone, to explain that number?
Emoov says £100m, so it’s £100m!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The valuation i imagine is based on Channel 4 buying x% for xPrice. I cant remember the exact numbers. But more fool them if they ponied up millions of pounds for a company that wont ever make any profit.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Cannot decide whether this continuing farce is more smoke or more mirrors, can anyone help me by answering that dilemma?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
‘Butt, who has now left the board of Emoov‘
Anybody know why?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
More’s to the point…
…does anyone know of a company that he bought or borrowed a place on the board of that has actually made tuppence more than chuff-all in profit?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I love the way emoov can pluck a figure from the air and state the company is worth that.
Its such good news my business is now worth 500 million. we are disrupting the disruptors!
I forecast that 2019 we will have T/O of 1 billion and a profit of 975 million. Also we will claim 95% market share.
I just need another 20 million to achieve this, so off to do the rounds to raise this capital.
Maybe Mr Butt wishes to get involved?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register