Houst- a UK-based short-let management company, has successfully secured its initial £1.5 million through its latest equity crowdfunding campaign on Seedrs. The funding round has attracted more than 250 investors.
Founded in 2015, Houst states it partners with homeowners, advertise their properties on platforms like Airbnb, and use technology to help manage bookings. From cleaning and laundry to guest communication, key collection, and pricing. The company previously raised over £1 million through its past Seedrs campaign.
“Our strategy in the short to medium term is to maintain focus on delivering the expansion of our core business model, rather than looking at alternative revenue streams. However, we have a breadth of long–term strategic options we are considering. Possibilities are not limited to our host-customers, but also include monetising additional (add-on) services to guests to compliment their stay. Since launching in 2015, we’ve managed over 250,000 guest bookings.”
In regards to what the funds from the latest Seedrs round will go towards, Houst added:
“Kickstart after COVID-19. The pandemic inevitably reduced our revenues in the short-term. But we took quick and decisive action to fast-track restructuring post-acquisition, automate areas of operations, and shift all properties towards medium-term lets. As a result, we believe that we’ll be able to kickstart faster and more strongly than our competitors. Unify the market. Emerging in a strong position provides a unique opportunity to grow our position as a global leader. There are hundreds of small property managers globally, most stuck with less than 100 homes because they don’t have the tech or capital to grow. We are approached regularly by operators looking to sell up and join the Houst group. We believe that here lies our opportunity.”
The campaign is set to close at the beginning of August. The Future Fund, a UK government initiative to support startups and early-stage ventures – many of which are not profitable, is its co-investor with a conditional offer. As previously reported, the Future Fund will match up to 100% of the amount provided by investor(s), up to a maximum of £5 million.
At least initially, £250 million has been allocated to the Future Fund. This amount will remain “under review.” The British Business Bank has published a website dedicated to the program with all the information necessary for applicants.
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