DN Capital, an early-stage investor in Purplebricks, is in talks to back Boomin, according to Sky News.
DN Capital has reportedly opened talks with Michael Bruce, executive chairman & founder of Boomin, who is looking to raise tens of millions of pounds ahead of the launch of the property portal early next year.
Boomin had planned to launch the new website early this month. But this was delayed, with some firms claiming that this was due to a lower than expected take up of agents.
DN Capital is among a number of financial and industry players in discussions about taking a stake in Boomin, which will now be launched next year.
City sources said that Bruce was seeking to raise up to £25m from prospective investors as he prepares to unveil what he claims will be a credible challenger to the main property portals.
Bruce refused to comment specifically on its talks with DN Capital, but told Sky News: “We are in talks with a multitude of investors, including some estate agents and strategic sector investors, on a first and significant equity raise to augment the substantial funds which are continuing to be provided by the founders of Boomin.”
“Any monies will provide additional firepower as we look to revolutionise the property portal space, harnessing the latest technology to provide a superior service for agents and a more rewarding experience for customers.”
Comments (24)
KW I agree that ZPG will be the first to change to vendor listing site – their USP being that much cheaper than RM might actually mean that agents do not come away from them – feeling that at that price point, it would be worth staying with a portal that self lists, as some of that inventory might flip to the agents down the line. But if you are paying RM prices – you want exclusivity.
Zillow is a tough call, interestingly I spoke with someone very senior in the tech world, and they said yes robots can sell my home, but for the price I would rather have a good human agent that knows the area, and all the wrinkles of the deal who can guide it through, it is well worth the fee. And on that – there is the rub, if onliners were super efficient at marketing and selling and then getting to exchange seamlessly, well I think vendors would pay 4%, if the service level was truly through the roof. It is always about VFM not cost.
Even in 1985, I thought that I was adding something to the deal by being efficient, knowing my product and listening to the client, that is all agency is, a service industry, buy sell let or build, we are servants, so why not do a better job and charge more, I always did.
Andrew, totally agree. The human touch is still very much needed. How this is done is another matter – whether in person or remotely online. I have spoken to many clients, family and friends about this and they still want this interaction. Buying and selling a house isn’t like buying a watch on Amazon or Ebay, it is a major decision. In many cases agents are dealing with people going through bereavement or divorce and at times can become a makeshift counsellor or even mediator. Even though it will be (or is even possible now) to buy or sell a house at the click of a button, people still want that personal touch. VFM by offering a better service and using some of the new tech to achieve this is definitely the way to go.
Like Zillow, Zoopla will eventually go the same way cutting agents out. Boomin will pivot too and RM will be behind them both. Watch out as it is only a matter of time before it happens. Like Andrew said, look at the bigger picture here.
Also, not sure if the original PB investor still holds shares in PB if so, my worry is this may all happen sooner and possibly see PB being bought back and re-branded to ‘Boomin Agents’ and then Boom – bye bye agents. Think ‘Tesco’ and how the obliterated the small stores by bringing out Tesco Express in every town/village. Just saying, anything is possible.
Ric – I totally agree – with you. If agents ‘collaborated’ they could easily build their own super digital hypermarket, instead all the data they get, sits in cold dark silos, untouched, they might sell the same terrace four times in 20 years, or sell to the same family 6 times in 30 years but not many agents knit all of this together. Yes giving up data to just one entity, may make you in the end a slave to the ‘one.’
But at least that one is doing something with the 97% of buyers who are not buying your stock, not because they dislike you, you just have not got the property they want.
But I find that extrovert agent – I was one for 30 years, is metaphorically eating a ham sandwich whilst speeding to his or her next MA or sale, though now probably you eat the sandwich as buyers twirl virtually around the digital doll’s house on their mobile.
The consumer wants a clickety click – do me now sir service, recently looking to buy and sell, my local agents gave me a ‘service will be resumed service’ – I see one of them won an award today … priceless – just shows that the granular experience, often is not the one we always seem to crow about when we are top dog agent.
I digress, beware Trojans bearing gifts, but beware doing agency like Groundhog day – that is probably going to stop your ham sandwich eating days far sooner.
Not one to be controversial – but in Jan 2020 how many people reading this post used Zoom video conferencing, well in the UK the number was 37,000. The number today 1,685,000. I would say that is adoption.
Raising finance for a new start up tech or otherwise is a sideshow – adoption is the main event. Should agents fear or lampoon Boomin that also is a sideshow – adoption by the general public that will be the main event.
Many agents have Rightmove, as without it the customer would think them not to be a real agent. Question is can Boomin burn into the public’s psyche, could it like Zoom capture a need or a want, that the consumer has? And if it does – any agent that is not a Boomin agent could be marginalised.
Yes Zillow pivoted in America – ditched agents and became Agent Zillow in September, could a portal or platform in the UK go the same route – well around the world portals do exist that list by agent and by self list. So who knows.
My advice start doing some bigger thinking, maybe start looking at real estate as a global industry not a UK phenomena – this will help you sleep better at night.
Would you visit a shop more than once if the shelves were empty?
My point being, we make the product and fill the shelves…. thus we should be paid for our services, not the other way around.
More importantly Boomin can only become successful with the support of the shelf fillers. Zoom had a unique catch market, you could argue the users were locked in a room and had no option but to find a way to communicate.
We work very hard for the stock we get in our own little corner shops… we should respect our stock… and indeed allow it more exposure, but I am not convinced we should pay the supermarket and allow them to make 70% + profit margins, when we do pretty much all the work to get the product packaged and make their supermarket look so attractive.
We are all for change and progression, but also some of us remember how Mr Bruce’s message was very much END THE HIGH STREET… and I am not convinced the set up and tech behind this is for the good of our little corner shops.
The bigger picture is protecting our industry not creating a mega store to float and make millions for the founders.
Unless Boomin can get traction with agents … they are dead in the water.
Doesn’t matter how much investment they get from any investor who should be doing their homework of how they expect to get a return. Wasn’t the cross selling of agents data supposed to be shared with agents? …. now investors and we all know what they did with PB dividends!!!!!!!
The public do not need another web portal. Agents do not need another copying of their data and the hassle and legal requirements that come with it. The legal bit Boomin are shy to disclose? The existing status quo have only to hype up their game and Boomin is a non-starter as they won’t role over and from what I have seen Boomin offer nothing new to the end user and presentation looks very similar to OTM version 2 on desktop. Once condensed down to smart app all the gloss is lost and requires cumbersome and time consuming effort by the end user on subject they did not look for? This is where agents hard work is converted into other peoples pockets?
So when did DN Capital sell off their shares in PB?
Have they still got them? If they have then they’re at a loss of the original share offer £1 each. If they sold them a little while after say at £2 each then there is a strategy. Buy in early and sell as soon as you can make a bit of a profit but don’t hand around or you’ll lose your shirt.
Well there you have it, a short while back they were saying they didn’t need investors, but all those TV ads they have ‘apparently already produced’ but yet to air, are going to cost a packet, as are those 50+ techies (a quote earlier of around 7.5M yearly) and not forgetting them big names they dragged across. The 25m will be eaten up in no time. Then what? They will need to claw this money back soon (from somewhere) as no investor does things for nothing (including them). This is a bad vicious cycle and no different to RM, Z and OTM. They will have shareholders. In terms of any agent that takes this risk ‘a fool and his money’ springs to mind.
I have watched from the sidelines as the Boomin saga unfolds with only passing interest because I am of an age where the arrival of a new portal will probably not affect my life too greatly. My only observations are that the name might represent a ‘smack in the teeth’ to the public who think we estate agents are over confident, make too much money and for some reason don’t always believe our hype that the market is booming and they need to line our pockets still further by instructing us immediately.
Secondly, have all the agents climbing on board been assured that the site will not include all our ‘online friends’ like PB, Yopa, etc etc. or will they be treated differently and as Ric suggests, might it become a sale by vendor site, and unlike him, I still think there are number crunchers at RM who are constantly checking to see if it would be more advantageous for them to go down the private seller route and if Boom can create some form of lucrative ‘add ons’ aren’t they even better placed to jump in and do the same – with bells on!
What have we all got to look forward to next year?
Merry Christmas to one and all and hopefully a healthier and more stable 2021
It would be interesting to see just how many on here who are slating BOOMIN are prepared to be held slaves to Wrongmove my bet is all of you.
I’m not on Wrongmove and I certainly don’t need to be on Boomin, a company owned by people who slated agents, want my data and very a very big risk of ‘For By Sale Private Sellers’ to come.
Every Bloomin’ Day!!
He doesn’t like watching his own money disappear.
Ring Neil Woodford, that sophisticated investor we used to hear about. He’ll back it.
Ouch!
£25m could be a drop in the ocean here. 150 staff at £50k average salary will be an annual burn of £7.5m. Like every other portal, the success will be on members signing up and paying fee’s. There is evidentially friction between the Bruce’s and agents. Beyond this issue I struggle to see what the Boomin offers that agents actually need. There are portals offering sensible contracts in Onthemarket and zoopla, the whole referral fee campaign from Boomin just seems confusing and against what industry regulators are trying to clear up.
Reading stuff from a few years ago TV ads will blow those staffing figures out the water running in to millions. This will be burning serious holes in their pockets so they need investors to stop them from going bankrupt!
I am gunna put it out there.
You must be ******* crackers if you believe Boomin is in the interests of your business and the humans you employ.
Give it enough of a foothold, and they will do what we all feared Rightmove would (but wont) and they will flip the message to “list direct with Boomin”
I mean, do they have the backing, the people who know and love the cut out the fuss of an EA approach.
They even say this in the promo video… Boomin will show you the things that you usual get by speaking to the property professional. We would do well to hold on to that feature if you ask me.
And you think Wrongmove has your best interests of your business, do me a favour.
Have I said it does? The story is about Boomin, last time I read.
Everything I pay for doesn’t have my BEST interests at heart, but lets stick to the story hey?
That said… some interests are potentially more dangerous than others… so in terms of paying for a service, Rightmove do Classified Ads as Boomin call it quite well. (Like them or not).
Tell me the benefit of letting Boomin know about your valuations you have done, so they can let potential buyers know? oh and think of a risk associated to this?
Bang on about valuations and how many sites have you seen where they offer hot leads. Where do those hot leads come from??? Don’t share valuations with anyone full stop.
I’m going to watch the comments come in on this article through out the day.
my personal view is that this could be the reason for agents not to back Boomin. But hey. Let’s see.
100%.