Dragon's Den: Mate's Place App Revolutionizes Flat Hunting with Social Vetting

Mate's Place: The Problem and Solution

• 💡 Mate's Place is a revolutionary app designed to address the challenges in the private rental market, particularly for young people facing high rents and shared accommodation.
• ⚠️ The app tackles issues like fraudulent listings, lack of available properties, and the common problem of difficult flatmates.
• 🎯 The core innovation is leveraging mutual friends within a user's phone contacts to vet potential housemates, aiming to provide the safety and trust found in living with acquaintances.

App Functionality and User Experience

• 📱 Users sign up and grant permission for the app to access their contacts, identifying existing users as first-degree connections.
• 🤝 The app extends connections up to the third degree, allowing users to see mutual friends and gauge trustworthiness within their social network.
• 🔍 Users can filter room searches based on their comfort level with connection degrees, with first-degree connections showing the specific mutual friend.

Business Model and Revenue Streams

• 💰 Currently, Mate's Place is free to download, but a paid version offers premium features, launched in January.
• 📈 The team is exploring additional revenue streams, including recommendations for services like cleaners and removal firms, potentially through referral kickbacks.
• 🗣️ The founders believe personal recommendations from trusted friends are more valuable than online reviews, which can be untrustworthy or paid.

Investor Feedback and Offer

• 📉 Several Dragons expressed concerns about the business model's complexity, high risk, and the need for significant further development and funding.
• ❓ Questions were raised about the effectiveness of social vetting compared to traditional agency checks like references and DBS checks.
• 🤝 Despite reservations, one Dragon saw value in the community aspect and offered £100,000 for 20% equity, a deal the entrepreneurs ultimately accepted.