CEO of Purplebricks Michael Bruce has revealed that he invested everything he had to start up the business.
In an interview with a US business magazine Bruce also said that other investors only came forward in force once they knew he was personally financially committed to the project.
Bruce told Inc.com that ‘the gates of funding opened only after he’d gone all-in and invested everything he had. Investors liked what he invested in, but liked even more the fact that he had invested so much of his own money and clearly had far more to lose than they did. That told investors no one would work harder than Bruce to make the idea work.’
Bruce doesn’t reveal how much that ‘everything’ was. But it hasn’t worked out too badly of course. Earlier this year he sold 4.4m Purplebricks shares to Axel Springer for £16m.
While Bruce’s devotion to his idea is admirable, conventional entrepreneurs might think it a little odd that Bruce should even see fit to mention such a thing. It has always been pretty standard practice for investors to expect entrepreneurs to have ‘skin in the game’ before putting their money into an untried venture. Why would proptech be any different?