Proptech (£10M+ funding)
We saw a burgeoning insurance proposition starting to take shape in the US real estate market. We believed there was an opportunity to launch a similar model in the UK. The proposition simply was that instead of tenants finding the equivalent of 6 weeks' rent as a down-payment and forever being locked in to the 'deposit trap', we would charge the tenant one week's rent as a fee, and then guarantee the landlord for the rest. Knowing the majority of the population in the UK has less than 3 months savings to their name, we felt this was a transformational proposition.
We were aware of how much of a stronghold the letting agents in the UK had, and how important they would be as an entry point for a product like this. We also knew how expensive selling to the long tail of the market would be (most agents are one-man shops with little coverage) so it was of huge importance for us to achieve scale quickly. So instead of treating the agents like an obstacle to jump over to get to the fee-paying tenants, we decided the winning plan of action would be to launch this with the biggest agents as an intrinsic part of the model, with skin in the game and positions on the cap table, consequently locking out the most significantly valuable part of the market from competitors. To achieve those kinds of deals with the big boys, we needed the company to look and feel like 'one of their own'. So we brought together a Tier 1 industry-class team to execute the business, with the COO of Zoopla heading up the business as CEO, and one of the industry's influential figures joining as our cornerstone investor and Chairman. From there, a dreamteam got formed and the rest is history.
Zero Deposit, became the market leader overnight. With Connels, LSL, Countrywide, Foxtons, Knight Frank and more becoming investors and exclusive roll-out partners, we had nationwide coverage from day one, secured a multi-million pound partnership with Zoopla to position Zero Deposit as defacto number one within its portal, and we achieved a significant funding round supported by some big industry names, family offices and VCs. Finally, as we secured backing and underwriting from MunichRe, it meant our "Zero Deposit Guarantee" came with credibility and assurance of the highest order. I exited this business successfully by the beginning of 2020.
As far as venture builds go, this was one of the most satisfying ignitions I have taken to market.