Poundland founder's crowdfunding bid hits £1.25m target
An online drive by the founder of Poundland to raise funding for his new estate agency business has secured £1.25 million in just 45 days.
Steve Smith and his business partners have been offering the 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 seen the businessman, who is from Alveley near Bridgnorth, joined by 200 new investors who have bought a share of the business.
Due to the overwhelming demand, EstatesDirect.com will now allow overfunding until the listing ends on April 12.
The investment will be used to fund an aggressive recruitment drive and regional expansion. EstatesDirect.com says it already controls 41% of the online market in Worcestershire in addition to employing local property specialists in Wolverhampton, Southampton, Cardiff, Kent, Surrey and central London.
It is now planning to roll out its successful business model to further locations across the UK as a result of this latest investment.
Ben Grove, managing director of EstatesDirect.com, said: "The hybrid model of EstatesDirect.com has captured the imagination of homeowners and investors alike. Investors are sitting up and paying attention to our rapid business growth, and confidence is high in our fixed fee model. The general public want a slice of our success, and we're excited to share it with them."
Dr. Mike Keen is one of the 200 investors. He comments: "Having previously bought shares in EstatesDirect.com, I've been very impressed by the business and its ability to guide the bewildered and unsure. When I heard it was to list on Crowdcube again, I took the opportunity to make a further investment. This is a company achieving great things, and only at the start of its journey; I wanted to be a part of it."
The Crowdcube success comes just days after figures revealed by Savvy Agent, a performance tracking website for estate agents, showed that 52% of all property sold through online agents in the Midlands towns of Worcester, Kidderminster, Stourport and Bewdley in the last six months was completed through EstatesDirect.com, saving the average client £4,572.
EstatesDirect.com uses websites such as Rightmove and Zoopla to market properties for sale from as little as £1, as well as finding tenants from as little as just £45. Clients can also meet with the company's local property specialists who provide local knowledge, free market appraisals, valuations and viewings to clients.
EstatesDirect.com was founded by DatingDirect.com (later Match.com) pioneer Darren Richards and entrepreneur Ben Grove, who were later joined by Steve Smith in 2013.
