Company News
Online real estate company Opendoor raises $210M
Reading Time — 4 minutes
December 1, 2016
By Kyle Tibbitts
Reading Time — 4 minutes
December 1, 2016
Financing will be used to scale the service to 10 cities in 2017 and continue building a best-in-class home buying and selling experience
SAN FRANCISCO, Nov. 30, 2016 — Opendoor announces the closing of its $210M Series D led by Jeff Crowe at Norwest Venture Partners with participation from NEA and existing investors. Opendoor, the consumer marketplace for homes, will use the capital to expand on its mission of simplifying the home buying and selling process and scale the service to 10 cities in 2017. Currently operating in Phoenix and Dallas-Fort Worth, the company is transacting over $60M in home volume each month and has served over 4000 homeowners since launching two years ago.
Opendoor Scales Home Shopping Experience
Opendoor redefines the home selling and buying experience, transforming a painful, lengthy process into a frictionless experience for customers. For sellers, Opendoor offers a simple, near-instant online sale, allowing homeowners to close on their timeline and skip repairs, open houses and months of uncertainty.
Patricia Smith was dreading the traditional home sale process and recently used Opendoor to sell her three bedroom house in Mesa, Arizona. “I was scared it would take months to sell. Three couples I know sold their homes through Opendoor but it sounded to good too be true. I was so impressed with how transparent Opendoor was about the process. It went very smoothly.”
For buyers, Opendoor offers a completely different home shopping experience, featuring on-demand open houses and a seamless purchase process. With a few taps, buyers can access hundreds of homes, find the ones that match their criteria, and have their own personal open house by taking advantage of Opendoor’s 7 days a week, all day open houses. Every Opendoor home includes a premium home warranty and a 30-day money back guarantee, delivering peace of mind to buyers.
Dallas home buyer Austin Philips used Opendoor to find his dream home for his growing family. “Opendoor gave me the huge advantage of seeing homes on my time. I have two little kids and they often have us living on a different schedule. With Opendoor, I could go see homes whenever we had a break. Now, I honestly can’t imagine the home buying process being any other way.”
Total financing now more than $320 million
Opendoor’s fresh capital infusion will be used to expand market share in flagship markets and bring its simple home buying and selling experience to thousands of new customers across the country. In addition to Norwest Venture Partners and NEA, other investors who participated in the funding round included Khosla Ventures, GGV Capital, Access Industries, Fifth Wall, Lakestar, SVB Capital, Caffeinated Capital, and Felicis Ventures.
Jeff Crowe, Managing Partner at Norwest Venture Partners will take a board seat as part of the round. “Norwest is excited to partner with Eric Wu and the Opendoor team through the company’s next stage of growth and its expansion into new markets. The company is offering a truly novel product for home buyers and sellers and its vision for the future of real estate is incredibly compelling.”
Rick Yang, General Partner at NEA, who participated in the round, commented, “We share Opendoor’s vision to transform the complex process of selling and buying a home into a simple, seamless transaction for all homeowners. The Opendoor team is rebuilding the entire process from end-to-end.”
Opendoor, now transacting over $60M in home volume each month, is focusing on scaling its consumer experience into new markets. “We are fortunate to have the support from investors that believe in our long-term vision and our ability to build an iconic, industry-defining company. As we look to scale Opendoor to dozens of cities, we are focused on building a world-class customer experience centered around transparency and trust.” said Eric Wu, CEO of Opendoor.
The company employs over 200 people in its San Francisco, Phoenix and Dallas offices. Opendoor was recently recognized by Inman, the industry’s leading source of real estate information, as the most innovative real estate company two years running.
About Opendoor
Opendoor, the consumer marketplace for homes, removes all the headache, uncertainty, and risk from buying and selling real estate. Headquartered in San Francisco with offices in Phoenix and Dallas, Opendoor was founded in March 2014 by Keith Rabois, an investment partner at Khosla Ventures, and CEO Eric Wu.