Opendoor, the service that allows homeowners to instantly sell their home online, has raised $20 million in their latest round of funding. This brings their combined raise to $30 million. GGV Capital led the round with Khosla Ventures, a prior investor, also participating. Glenn Solomon, a managing partner at GGV Capital, who has led investments in Square, Pandora, Zendesk and SuccessFactors, will join the Opendoor board of directors.
“Opendoor epitomizes what we look for at GGV: a great team going after a big market with a unique approach. The team has made incredible progress since the company’s founding, applying technology and a new approach to transform the frustrating home selling process to one that’s simple, certain and fast,” stated Solomon.
The company has reached several milestones including building the best home valuation model, which allows them to accurately predict the closing price of residential real estate. Opendoor is currently purchasing at least a home each day in Phoenix, its first market, as consumer adoption and demand accelerates for its instant online sales process. The capital comes as the company prepares to expand into Portland, Ore. and Dallas, Texas.
“Less than a year ago, we set out to change the real estate transaction process by providing homeowners with an instant offer and an online experience to greatly simplify their move,” said Eric Wu, CEO of Opendoor. “The adoption we’ve seen from customers gives us confidence that we’re on the right track.”
According to Realtor.com, the average home sits on the market for 103 days and a significant number of transactions fall through before closing. In the Phoenix area alone, nearly 25 percent of real estate listings are cancelled or expire after remaining on the market past 90 days.
“We’re removing all the friction to sell a home, redefining how people view their largest and most illiquid asset,” says Keith Rabois, Opendoor co-founder.
Homeowners simply enter their address online, submit some basic information, and Opendoor provides a real offer to buy their home within minutes. An Opendoor offer moves nearly the entire transaction online and allows the homeowner to close and receive funding in as little as three days.
“Dominic and Melissa Santos, one of our early customers, were on the cusp of leaving for their honeymoon but needed to sell their home first. They decided to use Opendoor and we handled the rest, allowing the couple to go on their trip stress-free,” explains Wu. “These are the types of opportunities we want to continue to create as more homeowners use our service.”
Opendoor makes it possible to sell a home online in minutes, removing all of the headache, uncertainty and risk from the transaction. Opendoor is headquartered in San Francisco, Calif. and has received a total of $30 million in funding from Khosla Ventures and GGV Capital, along with a large group of angel investors. For more information, please visit www.opendoor.com.
About GGV Capital
GGV Capital is a venture capital firm founded in 2000 with the unique idea to have one team investing in both China and the US. With $2.2 billion under management across 5 funds, the GGV portfolio includes Alibaba, Buddy Media, Didi Taxi, Domo, Flipboard, HotelTonight, Houzz, Misfit, Pandora Media, Quixey, SoundCloud, Square, SuccessFactors, Wish, and Zendesk. www.ggvc.com | Twitter: @GGVCapital | WeChat: GGVCapital