The collapse of Emoov should benefit the broader proptech industry, says an early backer of the business.
Faisal Butt, a former director of Emoov, its first investor and who founded the proptech accelerator Pi Labs, told Forbes: “When companies fail, what should happen is that the ecosystem matures.
“The fall of Emoov should lead to the strengthening of the UK proptech industry, as the talent and investors from Emoov move on to other companies, taking their lessons and wisdom with them.”
In the same interview, Butt said that Emoov simply didn’t raise enough money “to sustain the cash burn”.
He said: “While its rivals were raising capital in the tens of millions, relieving pressure so that management could focus on operations and execution, Emoov was raising small sums intermittency.
“Small fund-raises means that the ‘cash out’ date was always just a few months away.
“This ‘edge of runway’ existence was a huge distraction for management and ultimately affected their ability to execute.”
Butt also said that Emoov had no chairman for the last five years, lacking someone who could have provided a strong, independent voice to challenge the strategies and plans being considered.
Butt was a director of Emoov until May this year – the month that Emoov announced its merger with Tepilo and Urban.
In a separate interview, Emoov founder Russell Quirk said: “There are things I could have done differently. Hindsight is a wonderful thing.”
He also said: “I’ve hired the wrong people and things haven’t worked out. It’s been a big test and learning experience.”
The interviews are on these links:
Comments (14)
They just don’t understand our industry. They think they can re-invent the wheel … looks good on paper. Well many and even bigger players have tried for a decade or more and not one of them is left in the industry. They offered nothing new to the consumer other than charge a price that is unsustainable for a viable business and proven!!! The mistakes they made …. they haven’t a clue.
“The fall of Emoov should lead to the strengthening of the UK proptech industry, as the talent and investors from Emoov move on to other companies, taking their lessons and wisdom with them.”
We can only hope so. You all know the definition of insanity: ‘Repeating the same mistakes over and over and expecting different results.’
They may be taking their lessons and wisdom with them but they wont be taking their cash!
When companies fail, what should happen is that the ecosystem matures.
Erm……not really. When companies like Emoov fails having squandered millions of pounds of other people’s money, what should happen is a full investigation and/or the directors banned from operating again.
What a pile of corporate b/s.
Maybe (Self-Help) Guru is more apt considering they appear to have helped themselves?
‘Lessons will be learned from collapse of Emoov, says ex-director and proptech guru‘…….
Guru? I haven’t laughed so much for ages, thank you PIE you’ve made my day.
“I’ve hired the wrong people and things haven’t worked out. It’s been a big test and learning experience.”
I don’t think he’s learnt anything. Quick to throw his staff under the bus, no real self-analysis or awareness.
Big ego, small brain.
Boo hoo not enough money.
Moan moan wrong staff.
Take a look in the mirror and shoulder a large proportion of the blame sunshine.
Were it not for that fact that it’s been done to death, this is a prime candidate for a ‘fuhrer in the bunker’ spoof, with Quirk lashing out at the fools and incompetents who have led to his downfall.
Would anyone in their right mind want to work for someone like him in the future?
Surely if you’re burning through cash at that rate for that long it’s because you just don’t have a viable business?
He also said: “I’ve hired the wrong people and things haven’t worked out. It’s been a big test and learning experience.”
What a duplicitous thing to say, when clearly RQ was actually the problem with his flawed business sense.
That a nice kicking for the staff that he left with no jobs over Xmas. A fish rots from the head down!
Faisal Butt is just something else, it was only a few months ago he was patting himself on the back, inc Russell, saying what a marvellous team it was and how they pulled off a stunning “£100m” deal!
Everyone senior took their eye off the ball, we all know this yet they still point the finger elsewhere sadly. You’ve been found out Faisal.
These people just don’t get it.
You can’t change a service industry into retail which these so called disruptors are trying to do with OTHER people’s money.
Before blaming others, blame yourselves first. They were the ones who employed the individuals.
It’s all been a pain in the BUTT. 🙂