Boomin real estate portal goes bankrupt – report

Online real estate portal boom reportedly appealed to liquidators after failing to secure new funding.

According Sky Newsthe company – which was founded by the former boss of purple bricks and counted Channel 4 among its investors – brought in accountancy firm BK Plus to handle its insolvency on Monday.

Boomin was started by Michael Bruce with the aim of challenging established real estate players such as Move right and Zoopla. It has attracted investment from blue-chip backers including Foxtons and DN Capitalbut was unable to raise around £6m of additional equity.

According to Sky, the company’s 65 employees were told of the proposed liquidation on Monday afternoon.

Sources said a combination of the slowdown in the UK housing market and the sudden shortage of funding for start-ups had combined to spell Boomin’s death.

In a statement to Sky, Bruce said the timing had “not been our friend”.

“Our move to a paid, revenue-generating model from April 2022 coincided with the onset of the economic downturn and the drying up of funding.

“In line with most technology company scale-ups, we have revised our business model to reflect new market conditions, focusing more on our core differentiated products and improving efficiencies to advance the point where we reach break even and generate positive cash flow.”

Bruce said he injected significant amounts of his own money into Boomin to keep it going and also achieved “a successful partial spring raise”.

“While we had a plan, the support of a number of existing shareholders and a solution with a new investor, the gradually deteriorating economic situation, combined with growing uncertainty in the housing market, prevented us from to secure the necessary funding for the line in time to enable us to continue,” he told Sky.

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