A housing market social media platform has abandoned its crowdfunding effort and turned to City investors instead to fund its next stage of development.
PropertyHeads.com says the change of direction is not related to the Coronavirus crisis after raised just £48,000 of the £150,000 it was seeking.
Davis instead says the Coronavirus lock-down may give his business an opportunity as the whole nation hunkers down with their laptops and smartphones indoors, giving all online social platforms a huge boost.
Founder Ben Davis says he was spending too much time fielding hundreds of enquiries from individual investors rather than focusing on the business and has instead turned to contacts from his time working in the City.
Davis says he is about to announce an acquisition funded by his City cash that will see his business grow from 20,000 registered users to over 700,000 overnight.
“This means we can now speak with estate agents and, rather than asking them to list their properties with us in the hope of getting an instruction lead from us in the future, we will now have 300 registered users in every postcode,” he says.
PropertyHeads offers users both listings from estate agents and also local home improvement services which, Davis claims, makes it different to Rightmove, Zoopla and OnTheMarket.
“We are different because our business model isn’t wholly dependent on property transactions and instead we’re creating a local community of engaged home owners, buyers and sellers who keep using us to gain tradespeople recommendations,” he says.