Poundland founder in crowdfunding bid to raise capital for online estate agency
An online drive by the founder of Poundland to raise more than £1 million to plough into his new estate agency business has already seen investors shell out more than £800,000.
Steve Smith is offering £1.25 million worth of shares in his online agency EstatesDirect.com via crowdfunding platform Crowdcube.
It is the second time the company has listed on the site after raising £660,000 in 10 days last year.
The move has already seen the businessman – born and brought up in Willenhall's Portobello district but now living in a country house at Alveley near Bridgnorth, raise 66 per cent of his target, with £830,000 pumped into the business barely a week after the launch of the crowdfunding campaign.
Raising the £1.25 million will see EstatesDirect hand over five per cent of the equity of the business.
More than 100 people have so far bought into the business via the online platform, with the biggest investor shelling out £150,000.
"Together with initial capital from the board we were able to build the company up across the UK," Mr Smith said.
"This time CrowdCube will help us continue to expand and build on changing the estate agent business into a modern, consumer focused business."
EstatesDirect.com provides online property marketing for as little as £1, as well as services to find tenants.
The company achieved a record performance during February, exceeding its instructions target by 43 per cent.
"EstatesDirect.com especially appealed to me because it is not just another online estate agency," Mr Smith added.
"We have a number of franchised businesses, licensees and employed local agents, who provide the expertise and personalised service of a high street estate agent, which we know is still very important to customers when buying, selling or letting their property."
Mr Smith is already using the platform to market his own £6.5 million mansion, which he says will save him £115,000 in commission, although perhaps unsurprisingly the property remains available.
The 52-year-old said he wanted to bypass traditional agents, and the percentage they take on the asking price.
Mr Smith opened the first Poundland store 25 years ago, backed by his father Keith. He built the business to more than 50 stores before he and his father sold up for around £50 million in 2002.