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Tenant matching sites IdealFlatmate pulls crowdfunding campaign

The company reached over 80% of its £1.6 million funding target but has suddenly pulled its Seedrs campaign without explanation.

Nigel Lewis

Lettings platform IdealFlatmate has pulled its crowdfunding campaign to raise £1.3 million after failing to raise enough cash from potential investors.

The two-year-old company, which helps renters organise themselves via matching to rent shared houses, launched its campaign exactly a month ago.

As well as appealing to consumers, the platform also helps landlords, build-to-rent developers and letting agents find well-matched tenants.

In September it said the money would be spent on marketing, technical development and hiring more staff.

It sought the £1.3 million in return for a 16.67% share in the company, which was founded by young London-based tech entrepreneurs Tom Gatzen and Rob Imonikhe.

80% funding

Last week Seedrs informed potential investors that the company had raised £1.04 million or 80% of its funding target with 45 days to go, saying it was likely to ‘reach its funding target soon’.

“If you are still interested in investing in the campaign, we suggest that you take another look and invest to ensure you do not miss out on investing,” its update said.

But IdealFlatmate yesterday pulled its campaign after deciding it would not reach its funding target after insufficient numbers of private investors were pulled in by its track record.

This includes 300,000 site visitors, 15,000 new property listings and 9,000 flatmate registrations since launch.

IdealFlatmte is not the only property platform to pull its crowdfunding campaign including TheHouseShop in January this year.

Another company is also coming to close to its deadline – property funding site The House Crowd – has just 18 days to persuade investors to pledge enough to reach its £500,000 target, which is currently 85% funded.

October 24, 2019

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