London based proptech startup Ostrich has shut down after attempting to create a new model for buying and selling residential property. Founded in 2021, the company set out to challenge established property platforms and estate agents by giving buyers access to homes before they reached the wider market.
The startup raised approximately $3.98 million in early stage funding, according to PitchBook, with backing from investors including 20VC, founded by Harry Stebbings, and proptech investor Era Ventures. Despite building a community of buyers and sellers, the company ultimately closed its platform.
Ostrich’s website now confirms that the business has closed, while its help centre says the platform stopped operating on June 19.
A Different Way to Sell Homes
Ostrich was built around the idea that homeowners do not always need to wait until they are ready to move before exploring a potential sale.
The platform allowed homeowners to privately pre market their properties, including for people who expected to move in the future but were not yet ready to appoint an estate agent. Buyers could discover these homes early and submit indicative offers that could potentially persuade an owner to sell sooner.
The company described its target customer as homeowners who were curious about moving in the coming years but were not necessarily in a hurry to sell. Its model aimed to create more flexibility around the timing of property transactions.
Connecting Buyers and Owners
Unlike conventional property portals, Ostrich focused on facilitating a direct relationship between homeowners and potential buyers.
Registered buyers could discover properties before they reached the open market, submit viewing requests and include indicative offers. Homeowners could then decide whether they wanted to engage with a particular buyer.
The platform also required buyers to verify their identity and provide information about their purchasing position when requesting a viewing. Owners could set their own price guide, while Ostrich provided suggested pricing based on local market information and comparable transactions.
This approach was intended to address what Ostrich saw as a limitation of the traditional property market, where buyers typically see homes only after owners have formally decided to sell.
Building a Marketplace
During its operation, Ostrich attracted tens of thousands of registered buyers and thousands of sellers. The company also completed property transactions, with its website showcasing numerous homes that were sold through the platform.
Ostrich charged sellers a 1% commission plus VAT when it completed a sale, with no upfront charges. The company also handled parts of the transaction process, including buyer qualification, proof of funds checks, negotiations, preparation of sale documents and coordination with solicitors.
The platform’s model therefore extended beyond simply listing properties and attempted to provide a full alternative to conventional estate agency services.
Growth Challenges
Despite attracting users and completing sales, Ostrich appears to have struggled to reach the growth trajectory required to sustain the business.
A source close to the startup said the company had not grown at the expected rate. The closure highlights the difficulty facing property technology businesses attempting to change established consumer behaviour in a market dominated by major portals, estate agents and long transaction cycles.
The company’s shutdown also comes after significant investor backing and the involvement of experienced founders.
Experienced Founders
Ostrich was founded by serial entrepreneurs Richard Foister, Duncan Jennings and Max Jennings. The founders had previously been involved in businesses including discount platform VoucherCodes and family activity app Hoop.
The startup was understood to have employed more than 10 people before closing, although details about the future of its employees have not been publicly disclosed.
Winding Down Operations
Ostrich began winding down its services before the final closure date. Its official guidance said buyers could no longer make new viewing requests, although existing conversations, viewings and agreed transactions could continue.
The company has said that sales already agreed through Ostrich will continue to receive support through completion. Its current FAQ also states that customer accounts and associated personal data have been deleted, except where information needs to be retained to support ongoing sales or meet legal and regulatory requirements.
The closure marks the end of a property marketplace that sought to make home selling less rigid by connecting buyers and homeowners earlier in the process. While Ostrich demonstrated demand for a different approach to property transactions, its shutdown underlines the challenge of scaling a new model in one of Europe’s most established and competitive property markets.
