Days before launch easyProperty bids for £7.5m more funds

With less than a week to go before launch, easyProperty yesterday launched a round of crowdfunding, aiming to raise £1m in just 14 days.

Elsewhere, it is planning to raise a further £6.5m this month.

The £1m it is pitching for on Crowdcube will buy just 1.5% equity in easyProperty, valuing it at £66.6m, rounded down to £65m.

The minimum investment amount for Crowdcube investors is £500.

In documentation on Crowdcube, easyProperty reveals it is seeking to raise a total of £7.5m this month “to satisfy cash requirements”.

In an email to potential investors announcing the pitch, Luke Lang, of Crowdcube, said the Financial Times had described easyProperty as “easily the biggest brand name yet to enter the online estate agency business”.

It said: “easyProperty will offer individually priced property services which will enable people to decide on what services they need and then pay a one-off fee for that service – with no further obligations, admin charges or commission.”

The email said that the “UK estate agency market is currently worth £6bn per annum”.

The documentation says that the investment is to be made into e-Proper Services Plc which is in the process of being established as the holding company of the current operating company, E-Prop Ltd.

Other documentation gives potential investors a financial snapshot. This presents losses for the first two years of approximately £2.8m in 2013/4 followed by £4.8m in 2014/15, but with a profit of nearly £3m in the year from October 2015 to September 2016, and a profit of £9.7m the year after that.

By yesterday afternoon, 28 investors had chipped in £38,500 between them, with the largest investment at £8,000.

In an interview with Eye at the end of last month, easyProperty founder Robert Ellice said that an earlier funding round had raised £5.6m, although only £5m of it was used.

He also revealed: “We will shortly be looking at another funding round to enable us to roll out our services more rapidly.”

The crowdfunding site is here:

http://www.crowdcube.com/company-details/easyproperty-com-16655

Further financial information is here:

https://www.dropbox.com/sh/iba8b8v0hk55t3l/AADOP_yJcLL-uSNLnjT0iqmWa?dl=0

Eye has asked easyProperty to comment.

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66 Comments

  1. Trevor Gillham

    I've just dropped my ginger biscuit in my Tea reading this. It will be worth more than easyjet soon. I wonder if Michael O'Leary will be bringing us RyanProperty soon?

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  2. EAMD

    How a company that has no trading history can put a value of that ridiculous nature on itself is flabbergasting. I wonder if their Valuation area of the web site is as accurate. We could soon see the fastest ever rise in UK property asking prices!!

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  3. JW

    Remember easy cruise, easy cinema, easy pizza, east Internet cafe, easy DVD, easy4men, easy mobile, and the list rolls on. Most of us have a grudging love of Easyjet, but investors in this venture should remember that investments in easy branded businesses can go up, but often down (to zero).

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    1. Ric

      These names are just easycome-easygo.

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    2. Robin

      Right, that does it. I'm out of the UK property industry – can't possibly compete with that sort of innovation. I've registered 'easy-funeral' and will be seeking substantial cash via Crowdcube very shortly. Expect you all to chip in please – after all, the funeral industry is worth £2billion so I cant fail, can I?

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      1. PeeBee

        'course not Robin – you'll clean up! But why not 'disrupt' the market and combine the two industries? 'Move' your clients to their definite last place! I remember, back in the day as a young(ish) cog in a mahoosive corporate machine, we were getting so many deceased estates that a colleague asked our AD if we should answer the phone "Good morning, Black Hearse Agencies…" ;o)

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        1. Robin

          Nice one PeeBee – you've got a great idea there but would we have to site our office in the 'dead centre' of town? Not heard that one about the old BHA even though I also worked for them at one time…

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          1. PeeBee

            Unfortunately, Robin, the wit was not mine… but well worth a 'share' innit! Nice to identify an old BHA/BBEA colleague here – even if we are now on opposite ends of the OTM tug'o'war rope! ;o)

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    3. AJS

      If only they got easygirls… potential gold mine.

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  4. Ric

    I'm out………….

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  5. Benay

    More madness than Gummer's Hamburger Enterprises!

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  6. PortalPerson

    How on earth can they be worth 65 million pounds. Business' sell for roughly 5 times their annual profit so they would have to be making 13 Million pounds PROFIT in their first 3 weeks of opening for this to be a real target. Hyper inflated bubble springs to mind. What's next "ACME Properties" with Road Runner as the CEO? being valued at £100M?

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  7. RealAgent

    Ive just logged on to Crowdcube to see the forum comments and with headline questions such as "Am I missing something" and comments like "surely they mean 15% not 1.5%" not to mention "How can this unrealistic valuation have been vetted by Crowdcube" ……I suspect there are a few others that think Mr Ellice is urinating into the jet stream.

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  8. Property Personnel

    Reminds me of Jordan Belfort taking Steve Madden's shoe company public.

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  9. Beano

    And just how has he racked up such phenomenal debt so quickly. Where has the money gone?

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  10. ray comer

    speechless, just speechless.

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  11. Jonnie

    Crickey! Whopping numbers, can we can assume the 10,000 landlords they had all t'd up have done one ? – Jonnie

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  12. wilko

    "Easily the biggest and most well known brand to enter online estate agency"!….who out there remembers prudential,Halifax and nationwide back in the 80's?

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    1. Benay

      It is splitting hairs but he did say online agency. Now if the corporates you have mentioned as well as LLoyds Bank and Woolwich can fail at the main stream agency model what chance is there for this venture which is entering a crowded micro niche along with lots of others who are attempting the same thing? Online agency has been trying to break into the market since late last century. In half the time corporates have tavken to grab 10% of the market online has grabbed 1/5th of that. No way can Chris spin that to sound like anything other than a failure.
      There is a bit too much spivery about this to be taken seriously and my guess this is simply advanced level Quirking.

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      1. Eric Walker

        In fairness, Lloyds failed with the bank model too.

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        1. Benay

          Slam Dunk Eric! With Jonnie here and the return of sharp wit comments like that Nat can now turn off EAT without felling guilty!

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          1. Eric Walker

            I once received a letter from Lloyds – our bankers – advising how we should consider enhancing our business and their concerns. I replied with "Please don't tell me how to run an agency after your rip-roaring success with Black Horse Agencies". They told us to take our overdraft elsewhere. They also asked me if I could repay a loan "Not unless I robbed a bank!" I quipped. The measured reply was "To all intents and purposes, you have"

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          2. Benay

            I just wish I was a partner in Agency back in the 80's when the Prudential would pay partners to go on holiday for 12 months, give them a couple of million spendies and then pass back the office and decimated reputation 12 months later for a penny.

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  13. wilko

    Also, just a thought….why would you need another bucket of cash if you already have 10,000 properties and thousands of landlords already signed up? Wonder if easychris will making up any more stories today?

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    1. Jonnie

      Wilko is right, amazing brand, clever IT, entering a market that is desperate for disruption and full of daft old goats like me with a pitiful 98% customer satisfaction rating and 10,000 landlords pretty much begging them to take their property on and here they are going through cash at an admirable rate and need more……….@easychris, the floor is yours – Jonnie

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      1. easyProperty.com

        @jonnie for something you believe to be a failure before its even launched you seem to spend alot of time talking about us,which is fine with me:). If you have a great business model then of course you will do well,sadly report after report says that landlords and tenants feel they are not well served by the current model in many cases, with opaque pricing and high admin fees.

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        1. Jonnie

          @easyproperty. Hi – are you responding to a different post of mine? – your reply bears no relation to my comment mate. Ill go again for you; You are telling us with great authority that theres a market for what you propose to launch, you have the brand and you have 10,000 landlords ready to roll…….although the time that's passed since you gave us this number I assume some have let their property already unless they are waiting for you to grace them with your presence. So, with all this in your hands why not launch the 10,000 properties and start making some money? I like talking about all things property please don't confuse my engagement as anything more than enjoying the current stories on Eye although good for you for being 'current' and in return thank you for spending so much time talking to us . Again the floor is yours – Jonnie

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  14. PortalPerson

    Funny that there is no comment from "easyProperty" today

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    1. wilko

      That is because the company have realised he is a total liability with his rash comments that could not be underpinned with fact. Nowhere on the crowdfunding proposal does it say that 1000s of landlords are already signed up with over 10,000 properties….Surely if they are signed up that would be a major part of your proposition for further funding.

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      1. easyProperty.com

        @wilko as noted before its a fact,in fact the total is now over 13,000 properties [ landlord portfolios of those who have registered with us] ,your attacks on me personally sadly reflect more on you.

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        1. PeeBee

          Mr easyProperty states "…in fact the total is now over 13,000 properties [ landlord portfolios of those who have registered with us]…" The website gives it all away – "Our basic package is free for landlords. Your listing goes on easyProperty, and you handle the enquiries." Great. Smashing. Suuuper – what do you say, CJ? I think with 13000 NOTHINGS to look forward to banking, you might need a eensy weensy little more numptyfunding… ;o)

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        2. wilko

          Chris, I do not "attack you" but I do question you directly because I don't think you know what you are doing with this venture….You use the words "signed up" and then change to "registered on our site" You float in and out of debates and fail to deliver the money shot each time you are asked. So one more time on behalf of everyone you have thus far mislead on this forum …..Are your "signed up" 1000s of landlords with 13,000+ properties contracted with you to sell/let their property or have they just expressed an interest in your proposition. You will look very very silly when you launch in a fortnight and don't have 13,000 properties to advertise straight away – so here is your last chance to put the record straight before your launch. If you even just manage to upload 10,000(3,000 less than you claim to have) available properties on launch then I will formally apologise to you as I would have truly got you and your company completely wrong.

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          1. easyProperty.com

            @wilko I repeat yet again we have never claimed to have thousands of properties ready to list,we have registered landlords with portfolios numbering over 13,000. end of story. As for not attacking me have a reread of your posts.

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          2. Ric

            EasyChris…….Do the landlords know they are registered?…………….If I asked 1,000 house sellers, would they like to register to know about a new and exciting "free" way to sell their property, I guess 1,000 would say why not! so what have they registered TO DO?………………..In the meantime I am off to copy the UK electoral roll onto my agency database and see if I can raise a few million off the back of having millions of homeowners registered for my new business venture…….easypeasypropertysales.com .

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          3. PeeBee

            easyProperty.com on September 8, 2014 at 10:15 am: "…fact is we have signed up landlords with portfolios of over 10,000 properties…"
            easyProperty.com on September 8, 2014 at 10:38 am: "…our current start point is talking to thousands [ yes I said it again] of landlords of all shapes and sizes across the country and they ,in their 1000's have expressed an interest to the point they have supplied their details to us." So – there you have it – for the avoidance of doubt, easyProperty are basing their cries of success-to-come on "signing up" people ON A MAILING LIST. Mr easyProperty, please feel free to add me to your growing list of 'attackers'… but in the meantime, please remember that as long as you continue to tee them up, we will happily hit them out of sight.

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          4. wilko

            Chris…you clearly haven't recognized the difference between your quote of "signed up" which is very different from "expressed an interest " when used in the property industry. It is this naively presented nonsense that clearly shows you know little or nothing about the property industry.

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  15. Eric Walker

    £6.5m is not a huge sum for Stellios. I can hear the Dragons asking "Why do you want to risk our money when it's such a sure fire deal – why not ask Stellios? Or, with 10,000 properties, why not go to the bank?"

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    1. Eric Walker

      An Airbus costs around £100m – just a though

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    2. JW

      It's not clear what Sir Stelios has invested – probably nothing other than a tired 1990's brand and his name – a bit like Donald Trump does.

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      1. Eric Walker

        He isn't a shareholder – so I suspect that the chaps at easy property have invested in Stellios's easy brand empire in buying the license to use the name. It's a great brand so it was probably quite expensive. There are many 'easy' brands you may not know. For a full list http://easy.com/about-us.html

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        1. Ric

          Spot on Eric……Chris is going to realise very soon Sir Stelios has made a mint off the property market by allowing Chris to think using his Easy brand will work…………If it was worth this kind of money, Sir Stelios would be a 51% plus share holder I reckon!…..I applaud Sir Stelios for making a quick buck from the property market no matter what happens with this.

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  16. Paul H

    £66.6m valuation is plain bonkers!

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    1. PeeBee

      Overjoyed to categorically concur with you on this matter, Mr H! ;o)

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      1. Paul H

        Well it is a lot of wedge PeeBee. But why only £66.6m why not a bajillion as Austin Powers would say!

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  17. Tuf Luv

    Looks like they’ve really sh*t the bed on this one and no matter how Chris tries to lean into it easyProperty seems more sizzle than steak. Jeez, “to satisfy cash requirements” – I don’t even know what that means so come on Chris be real with me because I’ve not heard anything more moribund since the missus told me to see other people.

    I figure that high water mark’s still out of reach but turning the BS up to warp speed’s not going to get it done. £6bn a year market, let me know how that works out buddy. Me, I’m halfway through the posts of AM’s logo and a decent bottle of scotch so what do I know.

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    1. Ric

      “to satisfy cash requirements” = "we need money as we have none"

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  18. JW

    Interesting to see that during today – over 12 hours – the number of investors has remained unchanged at 46, but total investment has fallen by £6,000. Oops!

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  19. marcH

    easyproperty……….easymoney……….easylosses……….

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  20. PeeBee

    12 days to go… a total of 55 investors have stumped up a monumental £62,500, leaving a mere £931,500 left to raise, peoples. Sorry – exactly WHY is it called CROWDfunding…? ;o)

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    1. wilko

      I can't believe how poor the take up has been. I mean ,,, I didn't think they would reach target but this is shockingly low. For an idea that 1000s of landlords have "signed up" for you'd think they would take a piece of the action……Yet again easychris falls silent when the chips are down and the facts on the table.

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      1. PeeBee

        "Yet again easychris falls silent when the chips are down…" PLEASE tell me that was deliberate use of words, wilko! One way or another, gets MY vote for CotW… ;o)

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      2. easy Chris

        @wilko thanks for your concern very touching,your mother should have taught you patience is a virtue 🙂 over the last 2 days we have sent out more than 250 business plans at the request of crowdcube users,they are still arriving daily,you should expect to see our crowdcube numbers start to climb very soon. This is but a small part of our fundraise we are also, as announced doing a private placement and after afew days only we are on track to be oversubscribed on our target. Perhaps you boys should hedge your bets and invest you never know you may be dead wrong…..but I am guessing in your own minds at least you are always right so won't bother 🙂

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        1. Ric

          Hi easy Chris…….if you concede this easily on a forum like this then I really don't fancy your chances in the board room…………not sure the pitch for a few million quid of: "Invest with us and you never know it might work and you might be dead wrong" will get the cheque books flapping……….good luck though, you are out to make a living and for that I applaud you.

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  21. PeeBee

    ******* kicked out AGAIN!! Come on, Nick… problem STILL not fixed! Almost THREE WEEKS since first reported. Just what the ********** are your techies playing at??

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    1. wilko

      Yeah Nick that is a bit out of order…. as discussed the filter is only supposed to work if Pee Bee is directly replying to one of my comments to which he disagrees…..On this occasion the filter should have automatically let him through without the associated aggro he continues to experience. Thanks for your continued support…with a bit of tweaking it should work…PS I thought we agreed that my comments would get an autolike of at least 10?

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      1. PeeBee

        "…the filter is only supposed to work if Pee Bee is directly replying to one of my comments to which he disagrees….."

        Nice one, wilko – I reckon that at this rate no-one will click that you, me and Paul H are actually the same poster, and we are bring paid by the word to ramp up the post count on AM threads! ;o)

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        1. PeeBee

          erm… please ignore the last post. It wasn't me. Or wilko. Or Paul H for that matter. I – I mean WE – have been hacked. Honest. I blame PortalPerson. Or RM – they admit they PAY people to hack… ;o)

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      2. PeeBee

        I'm still working on the 10 'Likes'. It's easy-peasy when this bl00dy site logs you out as often… ;o)

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  22. Jonnie

    @easyproperty – Chris……..hello……Chris, where are you? Me, PeeBee and Wilko are stood here waiting mate, come on, be a sport and come back to the conversation mate, not the same without you – Jonnie

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    1. Benay

      the three Musk Ox Ears?

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    2. Ric

      I'm starting to feel oddly sorry for EasyChris………. I think his silence speaks volumes……….

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      1. PeeBee

        Maybe he's betting that we let it go, Ric… (…no doubt the first of many such lame jokes from me today…) ;o)

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        1. PeeBee

          I even managed to miss your 'oddly' quip… how very dare I! What were the chances of that – 50:1, maybe… ;o)

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          1. Ric

            hee hee……… he's an EasyTarget……..

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  23. Jonnie

    @easyproperty / Chris, Beenays here too now mate, where are you fella? – Jonnie

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    1. easy Chris

      posted at 12.06

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