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The estate sales service powered by Connells and Zoopla seniors, which gave busy homeowners and landlords a more efficient way to dispose of their homes, is now closed.
Movewise founder Tom Scarborough (main picture) revealed via his LinkedIn page that the company had shut down, despite offers being made to keep it operational and growing strongly.
He told his followers that the cash and motivation wasn’t enough to continue, blaming the closure in part on the setback many agents also face – revenue from their services is only realized when a property is sold.
moving wisely is Launched in 2018 As a “technology-driven” sales management service that works with agents, it has raised £3 million in seed funding from several of the UK’s top technology angel investors and has grown its headcount to 14, with annual revenue reaching 100 million pounds.
… The stop was sudden and shocked everyone. “
But Scarborough revealed that “when a business is funded by investors and the money no longer comes, it suddenly stops and everyone is shocked,” he said.
“We made a financing offer, but it was less than what we needed, it was completely dilutive to non-participating shareholders, and my expectation is that the investment of capital and further time would ultimately be lost as well.”
Scarborough also gave several reasons for closing the company, including declining sales, low “revenue quality” and narrow profit margins, particularly on the sale of landlord stock, much of which was obtained through an agreement with the NRLA .
But the business pipeline couldn’t be scaled, the founders said. The only option was to spend heavily on marketing to win over homeowners and landlords, and the company couldn’t raise capital from investors.
strong growth
Scarborough said Movewise was growing strongly despite the issues, but not enough to attract enough investor cash.
“The only thing worse than stopping now is being forced to stop in six months or three years,” he added.
“It’s a shame we have to stop. We all lose. Thank you to our customers, team members, investors and suppliers.
“You all believed in us, and while I believe we succeeded in building a better way to sell property, we didn’t succeed in long-term sustainability.”
Read the announcement in full.
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