Emoov's imminent demise is going to end up helping the larger proptech industry, according to an early backer of the hybrid property portal.
Faisal Butt, a former director of Emoov, its first investor and who founded the proptech accelerator Pi Labs, stated: “When companies fail, what should happen is that the ecosystem matures.
“The fall of Emoov should lead to the strengthening of the UK proptech industry, as the talent and investors from Emoov move on to other companies, taking their lessons and wisdom with them.”
In the same interview, Butt said that Emoov simply didn’t raise enough money “to sustain the cash burn”.
He said: “While its rivals were raising capital in the tens of millions, relieving pressure so that management could focus on operations and execution, Emoov was raising small sums intermittency.
“Small fund-raises means that the ‘cash out’ date was always just a few months away.
“This ‘edge of runway’ existence was a huge distraction for management and ultimately affected their ability to execute.”
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