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Agencies & People

Online agency Strike bags £11m more in funding for its national roll-out

Group of existing and new investors - including Channel 4 Ventures - have voted with their wallets in the agency's future.

Nigel Lewis

strike channel 4 deal estate agency

Online estate agency Strike has raised £11 million via its latest funding round from both new and existing investors as it tools up to become the ‘largest agent in the UK by market share’.

The new investors are Channel 4 Ventures, which has also an interest in consumer comparison website GetAgent, as well as Direct Line founder Sir Peter Wood.

Existing investors Freston Ventures and Toscafund have also participated in the latest cash raise. Toscafund also has interests in The Guild of Property Professionals’ parent company Eprop, and was an early investor in Purplebricks.

The new cash for Strike, which recently expanded its ‘zero cost house selling’ model into the Midlands, will be used to fund its push to become a national estate agency.

Strike says it has seen a ‘dramatic jump’ in its market share within the North of England during Covid, and says it will soon be the largest estate agency in the UK.

The involvement of Channel 4 will see the TV channel give the agency ads in return for equity. GetAgent has a similar deal with the broadcaster.

“We set out to shake up the estate agency industry when we first launched our sell for free service in 2019, and now we’re focused on expanding our digital-first offering through strategic investment and innovation,” says Strike’s CEO Sam Mitchell.

“It has been a turbulent year for the housing market, but we’ve managed to succeed against the odds.”

Vinay Solanki, Head of Channel 4 Ventures (pictured) says: “Strike’s disruptive ambition to redefine the way people move homes resonates with our own challenger brand values and sits well within Channel 4 Venture’s growing investment portfolio, which we’re focused on scaling as part of our Future4 strategy to diversify new revenue streams.”

July 12, 2021

One comment

  1. Strike only completes on 3,214 properties a year, out of the 1.2M properties that complete annually. Strike has been around since 2007, formerly branded Housesimple, and in 14 years they have only ‘helped’ 45,000 people to move.
    So in 14-years, there have been 16.8M completed sales in the UK, Strike has had only 45,000 of that pie. Bearing in mind they offer a freemium model now; this is a business going nowhere.

    In comparison a traditional one branch agency completes on 140 sales a year, and they charge proper fees, so Strike would only need to have 27 traditional offices to be completing on 3,214 sales.

    A cold start branch, needs 165K of seed capital, in year two breaks even, paying all that seed capital back and in year three makes 80k profit, by year five making a 250k profit.

    27 branches, as cold starts in 2007, would be £4.45M of seed capital, 2009 all capital repaid, by 2013 investors would be making 27 x £250,000 gross profit, 6.75M. In the next 8 years even allowing for unde3rperforming branches the cumulative gross profit, would be say £5M x 8, lets call it £40M plus Profit.

    Instead, tens of millions have been poured in, another £11M being wasted, give me a call, and lets use that 11M to cold start 65 branches tomorrow, and all investors in 36-months would have their capital back and maybe some profit.

    There is a lot of snake oil and emperors’ clothes going on – with SaaS as the new Messiah, I know a thing or two about that as well, so maybe 30 branches and the rest of the cash into the new model of agency we are on the cusp of.

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