‘Airbnb for the elite’ secures taxpayer backing from start-up rescue fund

Shoreditch House, a property available on The Plum Guide

A holiday rental company offering a luxury alternative to Airbnb that only curates the most elite home stays has secured taxpayer backing through the Government’s start-up rescue fund.

The Plum Guide, which originally stood for “people like you and me”, offers properties across the UK, New York, Rome and Paris. 

Founded in 2015 by entrepreneur Doron Messayed, The Plum Guide has received backing by Talis Capital, Latitude, Hearst Ventures and Octopus Ventures. 

According to its accounts, The Plum Guide raised £13m over the summer from its existing investors and the Government’s Future Fund, a scheme set up to bail out loss-making start-ups. 

The company scours rentals and says it only picks the top percentage of properties, sending reviewers to test the houses and leaving meticulous guides for potential guests.

They undertake a 150 point test on properties, rating everything from the shower pressure to the Wi-Fi speed.

Some rooms can cost under £100 per night, however the company’s most luxurious London properties can set travellers back several thousands pounds. The “Kensington Suite at Park Lane”, for instance, is currently listed at £8,000 for an overnight stay.

The Plum Guide’s website promises travellers its listings are the “benchmark for quality”, cutting down the 5 million holiday homes listed online into the very best.

The new funding is in the form of a convertible loan, which will leave the Government with an equity stake in The Plum Guide when it next raises funding. Companies can apply to the Future Fund for up to £5m, providing it is matched by private investors. Applications for the £700m fund closed in September.

The state’s investment comes despite The Plum Guide losing £11.7m in the year to December, according to its accounts. It last raised £14m in 2019. 

The Treasury has so far refused to name companies that have received backing from the Future Fund, despite pressure from MPs. Alok Sharma, the Business Secretary, said the information was confidential. 

This week Darren Jones, a Labour MP and chair of the Business Select Committee, said: “I am still not satisfied by the Government’s explanation as to why it isn’t publishing the data of which companies have received what funding, including through the Future Fund, given taxpayers could end up as shareholders of a whole portfolio of start-up businesses.”

The Plum Guide did not respond to requests for comment.