Buyer's agency Dashdot collapse leaves hundreds of clients out of pocket

When Matthew paid Dashdot $23,100 up-front, he believed he was taking a step towards securing his children's financial future.

Matthew and his wife, who asked for their surname to be withheld for privacy reasons, had been saving for years to buy an investment property that could eventually be passed on to their children when they became adults.

"We're just hoping that there's a fair bit there for them to give them a kickstart in life,"

he said.

The 50-year-old tradesman had been drawn to Dashdot after researching several buyer's agencies. He said what set the company apart was that it allowed him to speak to the person who would manage his account before he paid.

"I wanted to know who was going to run my account," he said.

"None of the other companies would give me that information. They'd say, 'Pay it, and then we'll allocate you to somebody.' Whereas I wanted to interview and have a chat to these people before I actually engaged them, which they allowed me to do."

But only weeks after Matthew paid the fee, Dashdot entered voluntary liquidation, on May 28.

The news came as he was overseas on his first holiday in two years, just days after he had spoken with a Dashdot property strategist who had told him the company was still actively searching for a property.

"Blindsided," he said. "Extremely disappointed and embarrassed, and worried for my children."

"I was extremely embarrassed to have to tell my wife, because it was me that brought all this to the table."

Dashdot blames collapse on 'trading conditions'

Dashdot was founded in 2019 by Glenn "Goose" McGrath and Gabi Billing.

The website stated it used a combination of its proprietary technology and in-house software to help customers with their property investing experience.

In an open letter published on Dashdot's website, Mr McGrath said the company would enter voluntary liquidation on May 28 this year.

In the letter, he blamed the startup's collapse on a rapid deterioration in trading conditions, pointing to weaker economic conditions as well as uncertainty and changes around property tax policy announced in the federal budget.

He also said a sharp increase in customer acquisition costs through Meta advertising meant their main source to attract new clients was "effectively cut off".

But he also noted Dashdot had been in "great health" as recently as the end of February this year, describing the business as "growing" and "profitable", before conditions worsened. He said the company had attempted to raise equity, reduce costs and explore a merger, sale or acquisition, but ultimately decided to enter voluntary liquidation.

Dashdot founders Mr McGrath and Ms Billing have been contacted for comment.

Cameron Murray, chief economist at Fresh Economic Thinking, said property-related businesses were highly cyclical and could come under pressure when housing turnover falls.

But he said it was difficult to attribute the collapse of any individual company to broader market conditions without seeing its books.

At least 700 Dashdot clients identified

Teneo senior managing director Rebecca Gill, who has been appointed joint liquidator of Dashdot, told ABC News at least 700 clients of Dashdot could be considered unsecured creditors.

Ms Gill said Teneo is in the process of verifying these records but the business had minimal cash available at the time of its collapse.

Teneo has only been appointed over Dashdot Pty Ltd, the single entity that entered liquidation, which sits within the broader Dashdot group.

Customers demand answers

The collapse has left affected customers with questions about the timing of deposits and up-front fees paid before Dashdot entered liquidation, and whether they will recover any of their money.

A second customer, who asked to be identified only as Emma, paid Dashdot $20,790 on May 1 for the company to find her and her partner an investment property. ABC News has reviewed the payment receipt.

She said she had felt confident using Dashdot because it presented itself as a large and successful operator.

"We felt more confident going with this company than a smaller company," she said.

"You would assume that, as such a big company, they would stand the test of time."

The company's founders had built a public profile through property investment podcasts and online and social media content.

She said she and her partner had a strategy meeting about two weeks before Dashdot entered liquidation, and there was no suggestion the company could not deliver the service.

"There was no indication that the business was struggling at all or that they could not follow through," she said.

"We were getting excited about the opportunity.

"It was a huge shock to see that email come through with no warning.

"We've lost all trust."

For Matthew, one of the central questions is what happened to the money paid up-front for services that were not completed.

"We got nothing for the money paid," he said.

"You're basically just paying them $23,100 for advice and staff wages [from this company]. It just didn't make sense."

Matthew said the loss would have a major impact on his family.

"At the end of the day, within my business, I need to turn over a quarter of a million dollars in my business to make that $25,000 back," he said.

"So I need to go back to work, grind it out, and just concentrate on paying debt and putting my kids through school."

Customers face grim recovery prospects

Professor Jason Harris, a corporate law expert at the University of Sydney, said customers who paid up-front fees would likely be unsecured creditors, unless their contract required the money to be held separately or on trust.

"If they go into insolvency, you're unfortunately just an unsecured creditor," he said.

"You go to the back of the queue."

He said secured creditors, insolvency practitioners and employees generally ranked ahead of unsecured creditors in priority and the recovery prospects in liquidations were, in most cases, poor.

"The stats are pretty grim," he said.

"Over 92 per cent of companies that go into liquidation pay nothing to their creditors."

An initial notice to creditors is expected next week and a more detailed report will be provided to creditors within three months of their appointment.