On Monday 21st September I announced the 4iP deal with MyBuilder. Out of the ten or so companies I've invested in on behalf of 4iP this far this represents the first equity deal and first in an established web business.
MyBuilder is a fantastic product and Ryan Notz's story is nothing short of amazing. I'm in awe of what they've achieved and feel in many ways they personify the perfect start up. It's going to be an absolute privilege to help shape and drive growth the product on behalf of 4iP.
I thought it might be useful to oultline both the consumer and the corporate reasons why 4iP chose to invest in MyBuilder. This blog post goes into a little more detail than the blog post on 4iP.
Squeezing out cowboy builders
MyBuilder aims to solve two simple user needs: the difficulty homeowners have in finding good builders; and the problems builders have in getting the right kind of work, when they need it and where they need it. Just like another 4iP investment School of Everything, MyBuilder aims to use the web to help bring people together who want to interact with each other. Working on a principle of accountability through feedback, tradesmen are rated on their workmanship by those who hire them, making it easier for consumers to find high quality builders and avoid rogue traders.
A new form of consumer protection
So as is customary in these posts I’ll run through the rationale behind the 4iP investment. Not only is MyBuilder a fantastic web product but with it’s strong public value objectives it’s an excellent fit for the 4iP portfolio. MyBuilder uses the web to deliver unique monetary and reputational transparency. It is in many ways a new form of consumer protection challenging both builders and consumers to change the way they do things; increasing accountability on both sides. The service in many ways continues the long heritage Channel 4 television has had with homes, guiding and educating homeowners on the best ways to improve their properties. We see our successful 4Homes website as a natural extension of this and a great platform to add value to MyBuilder.
Sustainability and scale
Secondly, the proposition is based on a strong and sustainable business model. The site generates revenues from builders paying a quarterly subscription fee and from success fees on completed jobs.
Additionally, a founding 4iP investment principal was to amplify existing products that make a positive change in people’s lives. Founded in 2004 by former stonemason, Ryan Notz, MyBuilder went on to win Seedcamp in 2007 and attract investment from the likes of Travis Perkins plc and the Accelerator Group. MyBuilder is an early stage UK web start up that’s gaining traction in a growing market. 4iP’s investment combined with Channel 4’s reach in the property vertical will be used to support the talent in the company and accelerate the site’s growth to become a dominant player in this exciting space.
Delivering growth
As mentioned a stated 4iP mission statement is to amplify existing products. Simply put we want to help drive new audiences to products and services.I think it's important to note that like other investors or angels 4iP bring more than just cash to the table. 4 is still a huge media brand and a UK 'attention sink'. It's my job now to try and ensure that where editorially appropriate we highlight new services of benefit to the 4 audience. The builder marketplace has a number of active players and we nearing the point when a race to scale could determine who survives. MyBuilder is a UK success story and in my opinion offers the best user experience. 4iP wants to lend a hand in that race.
Some of press following the announcement:
http://paidcontent.co.uk/article/419-4ip-gives-350k-to-directory-of-builders-will-put-with-4homes/
http://uk.techcrunch.com/2009/09/21/4ip-makes-350k-equity-investment-in-mybuilder-com/
Oh Lance!
This was amazingly beautiful! When my step dad left my mom she took her anger out of my sisters and I. She would literally joke and say she was not the mama. That truly made us feel abandoned, but I've always had God and my sisters.
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