easyProperty raises £1.4m on Crowdcube

CrowdFunding Beat News Wire,

New disruptive online estate agent exceeds funding target by nearly 50%

Exeter, UK – 24 September 2014: easyProperty, the latest venture from easyGroup, has turned to crowdfunding to help raise funds and change the face of the traditional estate agency market. Founded by Sir Stelios Haji-Ioannou, the founder of easyJet and the property entrepreneur and industry veteran Robert Ellice, the company closed its pitch on equity crowdfunding platform Crowdcube at midnight after raising more than £1.4m – well over its original £1m target. The pitch attracted 396 investors with the biggest single investment of £200,000.

Stelios and Rob Ellice launch easyProperty

 

easyProperty aims to turn the industry on its head, offering unbundled property services at huge discounts. Customers will be able to choose the property services they need when selling or letting a property and then pay transparently priced fee for that services, without further obligation, administration charges or commission. The company expects to offer savings of around £7,000 on an average London property, a huge reduction over traditional estate agency fees.

“The ‘easy’ philosophy is simple – disrupting the status quo and offering people significant savings on what they would normally pay. Now it’s time to shake up an out-dated property industry,” explains Rob Ellice, CEO for easyProperty. “Crowdcube was the ideal partner, with over 90,000 registered members providing a ready-made investment audience. By offering a stake in the company, easyProperty is giving landlords, property vendors and private investors a unique opportunity to be part of a market revolution.”

Luke Lang, co-founder of Crowdcube added: “Just as Crowdcube disrupted the finance industry with a new and fresh approach to raising money, easyProperty is planning to do the same for landlords and people buying and selling property. Ordinary investors can now claim a stake in the ‘easy’ brand and help shape the future of the online estate agency market.”

In a market worth £5.7bn in the UK alone, the estate agency market still delivers 98% of its services via the high street and just 2% online. The simple to use online platform will offer individual services for every stage of the letting or sale process, including advertising on leading property portals, professional photography, tenancy agreements and accompanied viewings, as well as value-added services, such as mortgages, insurance and conveyancing. A menu system gives consumers the power to choose exactly what services they need, rather than being forced into the often-costly bundled commission system they face with high street estate agents.

easyProperty launched on 17 September and will initially focus on lettings before moving into sales next year, with plans to expand across Europe in the future. Once established in sales and lettings, the company will also move into commercial property and other areas to become a one-stop-shop for all property types.

THE UK ESTATE AGENCY MARKET:
· Estate agents are the 3rd most hated profession in the UK
· Consumer mistrust – 16,957 in 2013 complaints to the Property Ombudsman, 10,179 for lettings and 5,314 for sales
· UK estate agency market makes c. £5.7bn annually from commissions alone
· Delivery of services still 98% via high street vs. just 2% online
· Over 20,000 UK agents (45% chains and 55% independent)

 

 

296x197_no_image

About Crowdcube:
As the world’s first and most successful investment crowdfunding platform, Crowdcube enables entrepreneurs to bypass the traditional business angel, venture capital or bank finance routes, giving them more control and access to more investors. For investors, Crowdcube provides them with a way to cherry-pick a stake in an innovative business that traditionally would have been restricted to corporate investors. In addition, they can now benefit from a fixed return per annum by lending money to more established companies offering a mini-bond on Crowdcube.

Since February 2011, more than 90,000 savvy investors have registered with Crowdcube, helping to raise over £37 million of equity finance for 145 UK business pitches.

Investing involves risk and should be done only as part of a diversified portfolio. Investing equity in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. Mini-bonds can be unsecured, non-convertible and non-transferable. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. Crowdcube is authorised and regulated by the Financial Conduct Authority (No. 572026).

Tags: , ,

Press Release