US-based OpenDoor has completed a $300m round featuring property developer Lennar and representatives of telecommunications firm SoftBank, conglomerate Access Industries and internet technology group Alphabet, valuing it at $3.8bn, TechCrunch reported yesterday.
Lennar, SoftBank Vision Fund, Access Technology Ventures and Alphabet unit GV joined General Atlantic, Hawk Equity, Fifth Wall Ventures, Norwest Venture Partners (NVP), New Enterprise Associates (NEA), SV Angel, GGV Capital, Khosla Ventures and unnamed others in the round.
OpenDoor has built an online platform that enables homeowners to sell their property relatively quickly and easily, offering a price based on information provided by the seller.
The company then carries out any repairs after a price is agreed, paying the money and selling the home through its app. It also offers prospective buyers assistance with scheduling viewings and making offers.
Eric Wu, co-founder and chief executive of OpenDoor, told TechCrunch the funding would support product development and the company’s expansion in North America, adding: “Our business is designed to operate in up markets, down markets and flat markets.
“During a slowdown, it becomes increasingly more painful to sell a home, which impacts mobility for homeowners and increases the need for reliable home sales through products like Opendoor. It is our responsibility to manage that risk and charge the proper fees to account for the volatility.”
The latest round boosted OpenDoor’s overall funding to almost $1.35bn. It last raised money in September 2018 when Vision Fund invested $400m at a valuation of more than $2bn.
Lennar, Access Technology Ventures and General Atlantic had co-led the company’s $325m series E round in June 2018, investing with property manager Invitation Homes, NEA, Khosla Ventures, GGV, Andreessen Horowitz, NVP, Coatue Management, 10100 Fund and Lakestar.
OpenDoor had already received $100m in debt financing from Lennar along with $35m of equity funding from Fifth Wall Ventures in January 2018.
NVP led a $210m round for the company in 2016 that also featured Access Industries, Fifth Wall, NEA, Khosla Ventures, GGV, Lakestar, SVC Capital, Caffeinated Capital and Felicis Ventures, at a post-money valuation of more than $1bn post-money.
Thrive Capital, Sherpa Ventures, SV Angel, Haystack Fund and the Mack Family were among OpenDoor’s earlier backers, before it secured $80m in series C funding from investors including Access Industries in 2015 at a $580m valuation.
