The US may have proved a graveyard for ambitious growth plans in the past - ahem Tesco (TSCO) - but investors are clearly excited by the prospects for online estate agent Purplebricks (PURP:AIM) across the Atlantic.

The company, which has been busy disrupting the UK market and launched in Australia in August 2016, has completed a ‘materially’ oversubscribed £50m placing of new shares to fund its US expansion.

BIG MOMENTUM

The shares are on a tear following this news, up 17.6% to 265.8p, and have nearly doubled since the start of 2017.

The potential could be very substantial, Purplebricks estimates the US market is worth $70bn in annual estate agent commission.

SCALABLE MODEL

The new money will be put towards hiring US management, building out necessary infrastructure, marketing and recruitment of local property experts.

The company says its platform and model is scalable and can be adapted to a fragmented US market.

The American market could suit the Purplebricks model as many realtors (US speak for estate agents) are already self-employed.

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