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One of the major funding avenues being explored by new online lettings service easyProperty, crowdfunding, has achieved 126 per cent of its target - and is still going strong.

easyProperty intended to use the Crowdcube crowdfunding platform to raise £1m towards an expansion of its online letting service, which launched last Wednesday.

However, by the launch itself more than £1m had been raised this way and an additional £264,000 has been raised since then.

To date some 312 investors have put money into easyProperty through this platform; the single largest investor has put in £200,000.

The company use of crowdfunding has drawn some criticism from Jon Moulton, a private equity guru, who said the 1.5 per cent of equity being made available in return for the original target £1m of funding effectively valued easyProperty at £67m - a high figure, says Moulton, for a company too new to have a track record.

This view appears not to be held by crowdfunding enthusiasts, however.

Separately, easyProperty is raising an additional £6.5m through conventional funding raising and marketing partnerships.

Comments

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    and here was I thinking we lived in a freemarket :) anyone who thinks its easy to raise these kinds of numbers should give it a try. We are delighted so many investors of all shapes and sizes have bought into our vision and our business. easyGroup btw are brand partners and have no operational role in the business nor in the fund raise, its all easyProperty :)

    • 23 September 2014 09:24 AM
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    Not surprising, is it Big, well-known brand attracts considerable interest from investment platform. Just seems a tad unfair on all the smaller businesses who don't have easyGroup's financial might and large PR machine.

    • 22 September 2014 16:21 PM
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