Crowdfunding success stories: EstatesDirect.com (second funding round)
Marking its second entry in our annual crowdfunding index, the online property agency secured £1.35m from the crowd to support its nationwide roll-out...
EstatesDirect.com is a great case study to demonstrate why crowdfunding isn’t just limited to one round of investment.
Having successfully raised almost £500,000 crowdfunding in April 2014, last month online estate agency EstatesDirect.com decided to turn to the crowd for investment once again and this decision paid off with £1.35m backed from over 300 investors.
Its pitch, which was available on Crowdcube, raised 75% of its original target with over 30 days and eventually overfunded from its £1.25m target in exchange for 5.36% equity.
Headed by high profile entrepreneurs Steve Smith; the founder of Poundland, and Match.com’s Darren Richards, EstatesDirect claims to be a new “hybrid breed” of estate agencies which offers customers 0% commission and a fixed fee with the same service as that provided by traditional agencies.
In a similar fashion to easyProperty, EstatesDirect is looking to tap into the lucrative proptech (property technology) and its goal is to use the funding to roll-out its agency platform nationwide.
Featured in our original 2014 index of crowdfunding success stories, EstatesDirect.com appears to have effectively utilised the crowdfunding model and now plans to achieve its ultimate dream of becoming the UK’s largest personal estate agency.