Sande Closes $ 80 Million In Residential Property Market

0
12


Ice cream, The residential real estate market, which brings together sellers of obsolete or damaged properties with potential buyers, raised $ 80 million in a Series C funding round. Together with Fifth Wall and General Global Capital.

Other funding sources include QED Investors, Wellington Management, Susa Ventures, Founders Fund, First American Financial, Prudence Holdings, Crossover VC, Intersect Capital, Gaingels and Oberndorf Ventures. The round marks the third funding for San Francisco-based Sundae in 13 months, bringing its total to $ 135 million since its inception in August 2018.

The San Francisco-based company declined to disclose on what valuation its Series C was raised. It also declined to provide accurate earnings data, only stating that from June 2020 to June 2021, it increased its revenue by 600% over the same period last year. of the year.

The startup seeks to help people who need to sell outdated or “damaged” real estate for various reasons, such as job loss, illness, or divorce. In some cases, according to CEO and co-founder Josh Stech, such vulnerable sellers are exploited by “predators and flippers” seeking to capitalize on their misfortune.

Since sellers in such situations usually do not have the funds to repair their property before selling, Sundae lists properties for them on its platform, acting as an intermediary between sellers and investors. There he is seen by about 2,600 qualified buyers outside the market.

In essence, the company is targeting aggregate demand from “refurbishers and fins” who use the market to trade with each other for distressed properties. If the seller agrees and the verification is complete, the company offers a $ 10,000 cash advance before closing to help homeowners pay for moving or other expenses.

Our goal is to drive out wholesalers who exploit discouraged or ignorant sellers and conclude a contract with them, which they pass on to a real estate investor with high returns, ”Stech said. “The tens of thousands of dollars in lost capital that goes to a wholesaler can mean the difference between paying off debt or having enough money to retire.”

Sundae claims that, on average, sellers receive 10 offers within three days on its marketplace.

Since its launch in January 2019, the startup has slowly expanded its marketplace geographically. He went from work to four markets in California late last year and now operate in 14 markets in Florida, Colorado, Georgia, Texas and Utah.

Sundae makes money by charging buyers on its marketplace to “assign” property to them.

In the first quarter of this year, the startup launched a dedicated online platform for investors where they can view properties and submit offers. Once an investor signs up to join the market, they can access a complete listing of properties, including information such as photos, floor plan, 3D walkthrough, and third party verification report.

Looking ahead, the company plans to use its new capital to expand into new markets, invest in its platform and “build brand awareness”. He also, of course, plans to increase the current headcount to 180, mostly remote employees.

Vic Chawla, partner at Fifth Wall, believes Sundae serves a segment of the residential real estate market that has historically been ignored.

“Their market model simultaneously solves a critical problem for sellers by disrupting the wholesale industry while providing a platform that real estate investors can count on for robust investment opportunities,” he said.

The company most recently raised $ 36 million in its Series B funding round in December 2020.

Interestingly, many business angels, including a number of athletes and celebrities, have also invested in the latest round of the company, including: actor Will Smith, DJ Kygo, three-time NFL Super Bowl champion Richard Seymour of 93 Ventures, NFL. All-Pro DC Metcalfe from Seattle Seahawks, Matt Chapman from Oakland Hey, Alex Caruso from Los Angeles Lakers, Aaron Gordon from Denver Nuggets, Solomon Hill from Atlanta Hawks, Kelly Olynyk from Houston Rockets, NBA All-Star Game Isaiah Thomas NBA 3-time and gold medalist Clay Thompson of the Golden State Warriors, Hassan Whiteside of the Sacramento Kings, Andrew Wiggins of the Golden State Warriors and 2020 USA Player of the Year and Juventus midfielder Weston McKenny.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here