Amid the recent slump in real estate investment, investors are looking to acquire a piece of homebuying startup Flyhomes.
The five-year-old startup today announced that it has closed a $150 million Series C co-led by Norwest Venture Partners and Battery Ventures. Fifth Wall, Camber Creek, Balysny Asset Management, Zillow’s Spencer Raskoff, and existing investors Andreessen Horowitz and Canvas Partners also participated in the round.
The end-to-end residential real estate startup says they handle “every step of the homebuying process, from brokerage to mortgage,” creating the financial tools that clients need throughout the process. The company has now raised about $310 million in total.
The startup is well positioned during the historic run-up of home prices in the US that has made deals more competitive than ever for potential buyers. A recent report by Redfin said that more than half of American homes are selling above their asking price right now, up from 1 in 4 a year ago. A report by Zillow states that nearly half of American homes are selling within a week of going on the market.
Flyhomes’ cash offer lending product allows consumers to make more attractive all-cash offers to sellers who buy homes, with the company noting that even if a buyer opts out of the deal, Flyhomes will still buy the home itself . At the heart of the startup’s business is sellers being more responsive to all-cash offers, allowing consumers to win deals even if they are not the highest bidders.
The company says has bought and sold more than $2.5 billion houses Since its launch in 2016.