The recent failure of Emoov has caused another property platform to abandon its attempts to raise investment using crowdfunding, it is reported.
Free online sales and lettings marketplace TheHouseShop launched a £500,000 funding appeal using Crowdcube in November. However, the campaign was ended prematurely before running its course.
A spokeswoman for The House Shop told the Estate Agent Today website: “Unfortunately the collapse of Emoov and the resulting negative sentiment and PR spotlight towards Crowdcube became too strong to ignore and we became concerned that it was potentially damaging for us to continue the campaign.
“We have made the decision to finish the funding round privately and we offered anyone who had expressed an interest in the Crowdcube campaign the opportunity to invest privately. We expect to close the round by the end of this month and it looks like we will achieve our target.”
It’s inevitable the failure of one online property platform will make investors think twice before investing in another one. However, TheHouseShop seems to be suggesting that investors are keen to invest, just not via Crowdcube – a curious situation perhaps.