Online estate agency firm eMoov closed its equity crowdfunding campaign at £2,615,530, trouncing their initial goal of £1 million for a 5% stake in the firm. eMoov ended up selling 12.1& of the firm. eMoov stated the offer was the highest amount ever raised on Crowdcube for a property tech business – a hot sector in Fintech today – and the 2nd highest for a tech company. The 6-week crowdfunding offer received investments from 795 individuals, ranging from £10 to £575,000. Several VC firms participated in the offer including, Episode 1 Ventures, Maxfield Capital Partners and Startive Ventures in Switzerland. The London accelerator Seedcamp also participated in the crowdfunding round. This is not the first funding round for eMoov. It received seed funding from James Caan, a well-known investor.
“I never in my wildest dreams thought we would get £2.5 million,” said Russell Quirk CEO and founder of eMoov.
eMoov states its revenue has recently jumped with turnover topping £1.8 million for 2015 in contrast to less than one million pounds year prior. eMoov management is targeting turnover of £39 million by 2018 – driven by the sector transition to online transactions. eMoov has informed investors of its intent to either do an IPO in 2016 or private sale in the “next few years”.
Quirk predicts aggressive growth, “We will continue to have the best tech platform and the best customer service in our sector and will push online estate agency to over 50 per cent of the market by 2020.”
Simon Murdoch, Managing Partner at Episode 1, described the estate agency business as “one of the last to be disrupted by technology”. “The benefit of that disruption will be a fairer cost for the consumer, greater transparency and a customer empowerment that simply doesn’t exist when selling property in the UK currently.”
“eMoov’s crowdfunding success is a clear indication of a long awaited transformation of an old fashioned industr,” stated Alexander Lazarev of Maxfield.
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