Proptech commentator says investing in OnTheMarket would be ‘horrible idea’

A proptech commentator has said investing in OnTheMarket is “a horrible idea”.

Mike DelPrete, a US-based entrepreneur who has lately been getting his opinions around on proptech matters, said: “Critically, OnTheMarket is a bad investment because it doesn’t provide value to users. There is no compelling reason for consumers to use the product compared to the existing alternatives, Rightmove and Zoopla.”

DelPrete was head of strategy at a property portal called Trade Me in New Zealand. His opinions on OnTheMarket’s forthcoming flotation are here: http://www.mikedp.com/articles/2017/9/13/why-investing-in-onthemarket-is-a-horrible-idea

Last night, OnTheMarket CEO Ian Springett told EYE: “We note the opinions of Mike Delprete, who is clearly entitled to his view on the property portals landscape. We note, too, the views of the overwhelming majority of our members who have supported our strategic proposals.

“We believe that by raising capital from new investors we will substantially strengthen our market position in terms of growth in both property advertisers and consumer traffic. Agents provide the main property listings content and the main revenue sources for property portals.

“Our members’ ownership of shares in the newly listed company will enable them to remain enfranchised, aligned and fully invested in OnTheMarket’s future success.”

 

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5 Comments

  1. AnotherPlanet365

    “We note, too, the views of the overwhelming majority of our members who have supported our strategic proposals.”

    Overwhelming majority, of how many Mr Springett, the numbers?

    Apparently around 250 voted no, around 600 were defaulters so in reality there were around 1850 members who were freely supporting yes voters.

    It’s a pretty shallow number Mr Springett.

    My prediction. Think of a hearty meal of baked beans, then a rumbling & parping sound. Is that the beginning or the end of conthemarket?

    It’s a pretty agitated or desperate Mr Springett that comments on this particular portal observer. What gives Mr Springett?

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    1. 1stTimeBuyer

      That’s a little skeptical.  After all, they had such high turnout for a yes they released the number of voters immediately… oh hang on, ah, they didn’t did they.

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  2. GilesH

    Mike DP is spot on. This new structure is allowing the very few to realise some cash via a vehicle that offers no value or benefit to ANYONE other than ‘founders’. Essentially we have all been gazumped. We already agreed an offer of mutuality and now Springett came in last minute with a ‘better’ offer for his merry men who, by the way are all of retirement age and disappear to enjoy the benefits. Any remaining members will only be left with nothing other than a bunch of paperwork.

    Best approach to this: run away from it and focus on winning instructions and building value for  your business. This whole farce has taken up too much of everyone’s time.

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    1. revilo

      Be nice to be able to ‘run away from it’!

       

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  3. AnotherPlanet365

    “Our members’ ownership of shares in the newly listed company will enable them to remain enfranchised, aligned and fully invested in OnTheMarket’s future success.”

    Let’s jot this paragraph down for future reference. Historically, haven’t we heard this already?

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