ActivePipe, a real-estate technology startup based in Melbourne, has raised $1.8 million in a pre-series A round to fund its expansion worldwide. The company’s subscription-based software, which employs predictive algorithms to alert real estate agents about potential property buyers and sellers, has eliminated the need for cold calling. The service also automates communications between real estate agents and their customers using machine learning and AI, which will be fully automated within a year, according to CEO Ashley Farrugia. ActivePipe’s platform improves the customer experience and the efficiency of agents. The startup has reported a revenue growth of 100% in the last year with over 9,000 paying users, including the top two real estate brands in Australia. The latest funding round was led by Asia Principal Capital, and the funds will be used to consolidate ActivePipe’s presence in the UK and expand into the US.
Have faith in your team
According to Ashley Farrugia, the CEO and co-founder of ActivePipe, building a startup with a strong culture and a closely-knit team was the key to securing $1.8 million in funding. Farrugia believes that the team is the most important factor in any startup’s success, as it not only helps in building a great product but also convinces investors that the startup is worth investing in. He emphasized that having a culture-first approach is crucial to building a good enough product that can disrupt any sector. Farrugia also advised founders to understand their staff’s career goals and help them reach those goals to build a great product and a successful business.
Ideas alone do not make successful businesses
According to Farrugia, startups should prioritize acquiring paying customers and validating their business concept in the real world instead of getting bogged down in perfecting their product or idea.
“Many people concentrate too much on the product, but having proof of concept, a customer base, and organic growth should be a starting point before approaching an investor,” he suggests.
He also emphasizes that ideas alone are not sufficient to attract investors, as they want to see evidence of a viable concept that can generate revenue and be scalable on a global level.
“Investors need to see that there are people willing to pay for your product, that you have organic growth, and that you can scale your business globally,” Farrugia adds.
In conclusion, Farrugia advises startups to prioritize customer acquisition and growth in order to demonstrate the potential for a successful and scalable business, which will be more attractive to investors.
