Amid a recent tear in residential real estate investment, venture capitalists are looking to get a piece of homebuying startup Flyhomes.
The five-year-old startup announced today that they’ve closed a $150 million Series C co-led by Norwest Venture Partners and Battery Ventures. Fifth Wall, Camber Creek, Balyasny Asset Management, Zillow’s Spencer Rascoff, and existing investors Andreessen Horowitz and Canvas Partners also participated in the round. Norwest’s Lisa Wu and Battery’s Roger Lee are joining Flyhomes’ board as part of the deal.
The end-to-end residential real estate startup says they handle “every step of the homebuying process, from brokerage to mortgage,” building financial tools that customers need throughout the process. The company has now raised some $310 million in total.
The startup is well-positioned during a historic run-up of home prices in the US that has made deals more competitive than ever for prospective buyers. A recent report by Redfin notes that more than half of US homes are selling above their asking price right now, up from 1 in 4 a year ago. A Zillow report notes that nearly half of US homes are selling within one week of going on the market.
Flyhomes’s Cash Offer lending product allows consumers purchasing homes to make more attractive all-cash offers to sellers, with the company noting that even if a buyer ends up backing out of the deal, Flyhomes will still buy the home themselves. Central to the startup’s business is sellers being more amenable to all-cash offers, allowing consumers making them to win deals even when they aren’t the highest bidders.
The company says it has bought and sold more than $2.5 billion worth of homes since launching in 2016.