Side, the real estate technology company, which is working to transform agents and independent brokerage firms into boutique brands and businesses, raised “more than $ 50 million” in a funding round, doubling its valuation to $ 2 billion.
The last funding arrives just three months after the San Francisco-based startup raised $ 150 million in a Series D funding round. led by Coatue Management at a $ 1 billion valuation. Tiger Global Management spearheaded the latest investments, which also included participation ICONIQ Capital and D1 Capital Partners. Thanks to the most recent capital injection, Side has raised more than $ 250 million in total since the company was founded in 2017. Matrix Partners, Sapphire Ventures, Trinity Ventures, and 8VC have led his previous rounds.
Syd says he is now “backed by three leading initial public offering (IPO) underwriters” and that the latest funding “sets the stage for a future IPO.”
In 2020, the startup generated revenue between “$ 30 million to $ 50 million” (we know this is a wide range) and expects to double its revenue this year. In 2019, Side home generated annual sales of over $ 5 billion from all of its partners. Today, the company’s agent-partner community has more than $ 15 billion in annual production.e. As well as Home sales are projected to surpass $ 20 billion by the end of 2021, making the company one of the “10 largest brokerage firms in the country by volume”.
Today, Side supports over 1,800 partner agents in California, Texas and Florida. It says home sales through agents are up 200% year-over-year in three operating markets: California, Texas and Florida. By the end of the year, the company plans to enter 15 new states.
Guy Gal, Edward Wu, and Hilary Saunders founded Side in the belief that most real estate agents were “undervalued and undervalued” by traditional brokerage models.
CEO Gal said that existing brokerage services are designed to support “mid-range” agents and therefore lead agents will eventually have to do “all the hard work”.
Side’s white label model works with agents and teams to exclusively market their boutique brand and provide the technology and support needed internally. The goal is to help Partner Agents “predictably grow” their business and improve its performance.
“The way to think about Side is how you think about what Shopify does for ecommerce. […] Partnering with Side, lead agents, teams and independent brokerage firms gain full ownership of their own brand and business for the first time in history, without the need for a brokerage firm, ”Gal told me during her latest promotion. … “When you spend years solving the problems of this very specific community of agents, you can use software to improve their effectiveness in a way that has never happened before.”
He argues that existing brokerages actively discourage agents from becoming top manufacturers and teams because agents serving fewer clients may be forced to pay much higher fees per transaction, which means incentives are inconsistent between brokerages and top agents. and teams.
“Leading manufacturers want to grow and differentiate, and brokerage companies want them to do less business with higher commissions and be more of the same under the same brand,” Gal said. “The party, instead of being hindered and competing with the leading manufacturing agents and teams, allows them to grow and expand their own business and brand.”