Opendoor raises $325M to make buying and selling homes a near-instant process

TechCrunch | 6/13/2018 | Matthew Lynley
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Investors are placing another huge bet on a startup looking to reinvent a decades-old process into something that’s near instant, this time pouring $325 million into Opendoor — a company that wants to bring the complex operation of buying or selling a home down to something similarly as simple as hailing a Lyft.

The idea of Opendoor is one not so dissimilar from a consumer theory that’s blossomed into companies worth tens of billions of dollars — consumers hate complex processes and are willing to hand off those processes to technology companies if they can make it even a little simpler. Home-buying and selling can be one of the more intense ones, requiring a lot of moving pieces and coordinating multiple time tables and schedules. Opendoor’s theory is that it can create a sizable business by dropping that time and energy cost to zero and effectively create a new technology-powered business model in the process, just like Uber or Airbnb.

Opendoor - Markets - End - Financing - Markets

Opendoor says it hopes to expand to 50 markets by the end of 2020 with this additional financing. It is in ten markets right now, and also says it now purchases more than $2.5 billion in homes on an annual run rate. The company says it has raised a $325 million financing round co-led by General Atlantic, Access Technology Ventures, and Lennar Corporation. Andreessen Horowitz, Coatue Management, 10100 Fund, and Invitation Homes also participated, as well as existing investors Norwest Venture Partners, Lakestar, GGV Capital, NEA, and Khosla Ventures. Opendoor has in total raised $645 million in equity and $1.5 billion in debt.

“What I realized was that one there’s a lot of tailwinds with people wanting to transact with their mobile device,” CEO Eric Wu said. “We see this with Uber and Lyft and Amazon. I think the future of real estate...
(Excerpt) Read more at: TechCrunch
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