Amid a recent split in residential real estate investments, venture capitalists are looking to get a share of home-buying startup Flyhomes.
The five-year-old startup announced today that it has completed a $ 150 million Series C round co-led by Norwest Venture Partners and Battery Ventures. Fifth Wall, Camber Creek, Balyasny Asset Management, Zillow’s Spencer Rascoff and existing investors Andreessen Horowitz and Canvas Partners also participated in the round. Lisa Wu from Norwest and Roger Lee from Battery join forces Flyhomes‘advice under the agreement.
The end-to-end residential real estate startup says it manages “every step of the home buying process, from brokerage to mortgage,” creating the financial tools clients need throughout the process. The company has now raised some $ 310 million in total.
The startup is well positioned during a historic US home price spike that has made offers more competitive than ever for potential buyers. A recent report from Redfin notes that more than half of U.S. homes are currently selling for above their asking price, up from one in four a year ago. A report from Zillow notes that almost half of American homes sell within a week of being put on the market.
Flyhomes’ Cash Offer loan product allows consumers who buy homes to make more attractive cash offers to sellers, with the company noting that even if a buyer ends up opting out of the deal, Flyhomes will still buy the home itself. even. At the heart of the startup’s business, sellers are more open to cash offers, allowing consumers to win them deals even if they’re not the highest bidder.
The company says it bought and sold more than $ 2.6 billion worth of houses since its launch in 2016.