A major Emoov backer, who lost all £3m investment in the hybrid property portal, has commented that there wasn't enough money for the amount of marketing that would be needed to make the venture a success.
He has also revealed that LSL had been on the verge of investing in Emoov but instead switched to Yopa, to the tune of £20m.
Most of all, Emoov could not compete with Purplebricks.
Simon Murdoch, a director of Emoov, said that his vehicle Episode 1 will not look at Emoov as a failure but as “a healthy learning experience”.
Murdoch also defends the business model and management, and the leadership of founder Russell Quirk.
Murdoch says: “In Russell Quirk, Emoov had an excellent CEO who did a great job building the business to become one of the UK’s biggest hybrid estate agents.
“He also hired an impressive C-level team with experience from Just Eat, BookaTable and Groupon.”
Murdoch says: “It wasn’t lack of a great product that caused Emoov to fold. Nor was it strategic or management mistakes. And it certainly wasn’t because the company lacked good leadership.
“So, if it wasn’t any of those things, what did go wrong?”
Murdoch says: “What convinced us at Episode 1 to invest £1m in Emoov back in 2015, followed in subsequent rounds to a total of £3m from us and around £20m from other investors over the years?
“The obvious appeal of operating via an online estate agency platform rather than running a network of physical branches – each with a team of staff – is that it offers opportunities to reduce costs through efficiencies and automation."
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