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.
https://www.crowdcube.com/companies/thehouseshop/pitches/bdYMmq
Comments (11)
Crowd funding is fake. Local lads raised £400k in our town for another business… had to give it back after realised the small print was strange. You can’t keep the money or something strange.
I think it’s a way fake business to get fake funding which then tricks hedge funds into really investing.
‘After consulting with our investors and advisors we decided that a £10m pre-funding valuation was both accurate and fair.’ Question answered.
‘After consulting with our investors and advisers we decided a value of £10m was both accurate and fair’. Oooh look a flying pig.
£164,000 raised so far – How fools and their money part so easily !
Pick a number, any number. Now double it!
As has been said before its about time Crowdcube etc were regulated and the business owners were liable if there fantasy values were not fulfilled or at least anywhere near them.
Remember the £100million value quoted by Emoov!
I agree Crowdcube is a dangerous forum. Companies are allowed to pitch and “sell”the story with relative impunity.One way street Anyone who raises difficult pertinent questions is quickly set upon in “Trustpilot”fashion and squashed. under the guise of “personal attacks” . I was banned very quickly !!!
I pity some of the investors who have been sucked in How many craft gins or beers can be all successful
If these 12 investors spent £164,030 on a property in Manchester i’d guarantee them a 6% return. Are they mad !
I’d love to hear Peter Jones have a Dragons Den session with these fantasists.
The response says: “After consulting with our investors and advisors we decided that a £10m pre-funding valuation was both accurate and fair.”
…….and the cow jumped over the Moon.
Geared very much to “sale by owner” so difficult to see how it’s going to attract professional estate agents.
Well at least they can pen a decent description unlike their Crowdcube compadres 99 Home Ltd .Maybe potential Crowdcube investors should be well advised to watch very closely developments at Emoov . Investors secured their last Summer must be sitting on tenterhooks who were enticed to part with their money with a rosy picture painted!