As a result of the recent correction in the tech market, start-up founders and investors are unable to access IPOs and large capital raisings, and are instead exploring secondary markets for liquidity. Among the start-ups that have turned to secondary markets are Urban.com.au, an off-plan property marketplace, and proptech agency Social Garden, which have sold a parcel of shares worth $1 million to Steve Kloss, co-founder of Carsales, in exchange for a small amount of equity. Kloss is also set to join the board of Urban.com.au. While the two businesses are separate entities, they share the same co-founders and together were valued at $40 million. Urban.com.au’s website and mobile app provide updates on tours and development progress for over 20,000 off-the-plan residential property projects, aimed at potential buyers.
Mike Bird and George Glover, who also own property adtech LeadTech and edtech Student Garden, have generated a collective revenue of $15 million in the 2022 financial year, and their companies employ more than 100 people across seven countries. Carsales co-founder Steve Kloss recently invested in Bird and Glover’s Urban.com.au, marking his first investment in the business. Bird believes that Kloss’s inclusion on the board is a recognition of his valuable strategic advice and involvement. Bird hopes to emulate Carsales’ success and transition Urban.com.au from an advertising marketplace to a transactional one. The goal is to partner with the best agents and agencies in the market and deliver property developers a fixed price per sale, which will help them manage cost and reduce risk, similar to how Carsales Select is transforming the purchasing process by taking transactions online.
