Pass The Keys seeks £500,000 in Seedrs crowdfunding campaign

UK: London-based short-let property management company Pass The Keys is seeking to raise £500,000 as part of an equity crowdfunding campaign on the Seedrs platform.

The short-let tech platform is offering 5.88 per cent at a £7,997,542 pre-money valuation. At the time of writing, Pass The Keys’ campaign has so far reached £442,801, 89 per cent of its target, receiving funding from 89 investors, ahead of the campaign’s closing date in mid-August.

Any business seeking funds through Seedrs sets an intended target for the amount it wants to raise, but if it does not achieve that target, the money is then returned to investors. Investors do not have to pay any upfront charge when they invest, but entrepreneurs must pay a 7.5 per cent charge once the target has been hit, and if shares in the company are later sold at a profit,  Seedrs takes a 7.5 per cent cut from the profit.

Danish luggage storage provider LuggageHero is another company in the short-term rental space that has recently raised money through a Seedrs crowdfunding campaign, announcing last month that the round had closed at €409,000.

Pass The Keys, founded in 2015, specialises in providing a platform for landlords to manage all of their disparate properties all in one space. It makes money through a combination of initial joining fees, and a consistent revenue split with franchisees at 4.5 per cent of total booking value.

The company’s statement on its Seedrs crowdfunding page says: “Our services include advertising properties on multiple platforms such as Airbnb, HomeAway, Booking.com, etc; inventory control; dynamic and seasonal pricing; vetting guests and managing the booking process; checking the guests in and out; cleaning; supply of toiletries and linen; maintenance; post collection and more. We make sure that occupancy levels are high thus generating maximum return for our clients.”

Pass The Keys will use the funds from the Seedrs campaign for the following purposes:

  • 30 per cent will go to product development, improving its existing tech infrastructure, adding new levels of automation and increasing the productivity of each property from 50 per person to up to 70 per person
  • 20 per cent will go to training and support infrastructure, creating online training modules to support the franchise network expansion globally.
  • 50 per cent will go to franchise expansion, expanding the UK partner network from 14 to 30 by the end of this upcoming year.

Pass The Keys has reported reaching two-times yearly revenue growth for the last two years, having gained its status as an official Airbnb partner and professional co-host. Last year, it expanded beyond London into Cardiff, Windsor and Belfast, taking it above 20 cities in which it operates.

COO Matt Chetwood said: “The Seedrs campaign is to help and accelerate our growth, specifically through the acceleration of our fast growing franchise network and tech investment. The campaign was due to originally launch in late March 2020, but due to Covid-19, was delayed to better understand the current and future market.

“Encouragingly the franchise programme has accelerated during Covid-19, exceeding both the original and revised budgets giving us the confidence to proceed with the campaign. The campaign has exceeded our expectations, being 89 per cent funded within the first 24 hours of going live,” he added.