The company’s business plan states that it has the potential to be valued at £128m. However, it is currently losing money. In its Crowdcube pitch, eMoov claimed that it made pre-tax losses of £751,941 in 2014.
The pitch concluded, however, that eMoov was founded to “disrupt a broken, anti-consumer property industry” and expects online market share to hit 50 per cent by 2020. Finding its equal footing once more, it explained, will be done via the help of crowdfunding.
According to Russell Quirk, CEO and founder of eMoov, investment funding has always been an integral part of the company’s growth. In 2013, after first having met former TV dragon James Caan, Quirk wrote: “I decided that in order to boost eMoov to become a mainstream, truly recognisable brand I would have to enlist some help. At the forefront of my mind was investment funding, whereby I would raise a chunk of money to spend on marketing and infrastructure.”
He went on to raise $2.3m (£1.50m) in seed funding in January 2015 after targeting improvements to the customer experience on the platform. This figure was pushed over the £2m barrier due to investment from Simon Murdoch’s venture capital firm Episode 1, and funding from Caan.
The company’s turnover has increased from £965,619 in 2013 to an estimated £2,916,456 in 2015. eMoov plans a further raise in early 2016 with an IPO or private sale anticipated thereafter – whereby a £100m+ valuation is expected.
The online estate agency now comprises eight per cent of the industry, having risen from two per cent only two years ago.
Read more about crowdfunding:
- Why the UK’s newest crowdfunding firm is aiming investors at emerging markets
- The best of both worlds? Financing a £30m venture capital firm with crowdfunding
- Older demographics are the biggest fans of crowdfunding
The online estate agency is also now looking to raise a minimum of £1m from crowdfunding commencing 1 September, with a 48 hour preview for existing investors, friends and family. eMoov’s fundraising follows recent multi-million pound fundraisings from Purple Bricks, Estates Direct and easyProperty.
Commenting on the move, Quirk said: “When I founded eMoov in early 2010, it was just me sat a desk in a windowless 8’x8’ serviced office. Today, we employ 45 people and have sold over 4,500 homes with a combined value of £1bn.
“Part of our progress has been fuelled by investment partners and advisors who have pumped money, knowledge and time into the business. This latest round of investment will set the scene for even bigger growth, which I believe, as a market leader, will culminate in the online sector taking around 50 per cent of the UK estate agency industry by 2020.
“Over recent years I have been approached by numerous investors, friends, family, customers, staff and business colleagues who ask ‘How can I invest in eMoov?’ This is that opportunity. Our target is £1m, but of course we’d be delighted if we raised even more.”
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