EstatesDirect.com owner and former Poundland boss Steve Smith is offering £1.25m worth of shares in his online estate agency via a crowdfunding platform CrowdCube.
The platform shows that Smith, who is spearheading the appeal along with his EstatesDirect co-director Darren Richards - founder of the dating website that has become Match.com - have so far raised 30 per cent, including one investment of £80,000.
It is the second time the company has listed on the site after raising £660,000 in ten days last year.
Smith told Insider Media: "Together with initial capital from the board we were able to build the company up across the UK. This time CrowdCube will help us continue to expand and build on changing the estate agent business into a modern, consumer focused business."
EstatesDirect.com provides online property marketing for as little as £1 as well as services to find tenants.
"We have a number of franchised businesses, licensees and employed local agents, who provide the expertise and personalised service of a high-street estate agent, which we know is still very important to customers when buying, selling or letting their property" says Smith.
Comments
Why do they keep offloading shares to CrowdCube They don't seem very confident that what they're offering will actually work.
Yep, despite the significant business pedigree - Poundland and Match.com have both been clear success stories, whatever you think of them - this does look destined for failure. Just like Stelios and easyProperty, this shows that just because you are a major player in one industry doesn't automatically mean you will be an instant success in another, very different arena, no matter how much money you chuck at it.
No need to franchise, just use our system, up and running within a week!
https://estateagent.me/newbusiness
I don't like online 'agents' at all, I think they offer a weak platform for selling and mislead vendors.
However, I actually quite like the Estates Direct model. You can pick from several different packages and find exactly what you want. Also, their higher service package is actually set at a sensible price (2000 + I think).
Anyhoo, seems like they're destined for failure what with the rise of purplepricks and co. I'm sure many of the hopeful start-ups in online agency will begin to falter and fade away soon, as a handful of the better established and better funded companies make headway.
There are only so many DIY vendors around, and as online agency relies on high stock levels, the end is surely nigh for many of the smaller guys.
Not so much 'either'... more like [b]all[/b] of the above, Industry Expert! ;o)
Interesting. So Mr Smith either:
1. Got his figures wrong on first raise
2. Wants others to fund as he doesnt believe in putting own funds in
3. Doesnt understand estate agency
4. Has realized budget is the wrong agency model
5. Has poor management who can't make it work
And did he ever sell his house throught Estates Direct. If so did he get his price.
Should have stayed at Poundland. I hear theyre doing well