US-based property investment technology developer Roofstock has raised $240m in a series E round led by SoftBank Vision Fund 2, a corporate venturing vehicle for internet and telecommunications firm SoftBank.
JLL Spark, Citi Ventures, SVB Capital, and Newton Investment Management North America took part in the round on behalf of real estate manager JLL, financial services providers Citi and SVB Financial Group as well as investment banking firm BNY Mellon respectively.
Khosla Ventures, Lightspeed Venture Partners, Bain Capital Ventures, Canvas Ventures, First American Financial, Expanding Capital, 7GC & Co, The Private Shares Fund, Masco Ventures, Pegasus Tech Ventures, Caz Investments, Moving Capital (also known as Uber Alumni Investment Club) and DoorDash Angels filled out the participants in the round, valuing the company at $1.94bn.
Founded in 2015, Roofstock has built an artificial intelligence-equipped real estate investment platform that enables users – from first-time investors to asset managers – to assess and buy unifamilial properties. The company claims it has helped manage more than $5bn in transactions.
SVB Capital had led a $50m series D round in early 2020, investing alongside Fort Ross Ventures, 7 Global Capital, Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures, taking the company’s total funding to $133m.
Roofstock had completed a $42m series C round in 2018 when SVB Capital and property developer Asia Pacific Land provided $7m in a second tranche. Canvas Ventures led the $35m initial close the previous year, featuring returning backers Lightspeed Venture Partners, Bain Capital Ventures, Khosla Ventures, Nyca Partners, QED Investors and FJ Labs. SV Angel and private investors are among Roofstock’s earlier investors.
Gary Beasley, chief executive and co-founder of Roofstock, said: “There has never been a time quite like this for single-family real estate, and Roofstock is truly at the vanguard of making the market work for everyone.
“We are grateful for the continued support from our new and existing investors and stakeholders who share our vision to make this a modern, radically accessible asset class. I could not be more excited to welcome our partners from SoftBank to join us on this ambitious journey.”
Serena Dayal, an investment director at SoftBank Investment Advisers, the subsidiary that oversees the corporate’s Vision Funds, added: “Real estate is a huge asset class that has been relatively untouched by technology, and is often fragmented, analogue and inefficient as a result.
“Roofstock makes buying and investing in rental homes seamless and accessible, and we saw a huge opportunity for the platform, particularly as interest in the sector continues to grow. We are excited to partner with Gary and the team as the company grows into a category leader and de facto resource for [single-family rental] investors.”
Image courtesy of Roofstock Inc.
