Homepage / Technology / House-flipping start-up Opendoor just landed $325 million to expand across the US
Asia set for a cautious open as US-China trade tensions simmer Many companies at Cannes Lions had yachts, but Google, Facebook, Spotify and Twitter have beaches Tech could soon turn into the market's headache: Wells Fargo's Chris Harvey Forget millennials: Here's a good reason why Apple should hire your grandmother How Amazon's roaring success selling batteries is making it wonder which market it can disrupt next A company is showing how blockchain is more than just cryptocurrency — it can also cut food waste AT&T and Verizon have drones that could provide cell service and save lives this hurricane season How the Supreme Court may have made Web shopping pricier for just about everyone but Amazon How to choose between an Amazon Echo, a Google Home and an Apple HomePod Electric scooters draw hordes of investors and avid users — but a number of critics as well This floating robotic factory will build satellites and spaceships in orbit Meet the man whose job it is to reassure people that Google search isn’t evil Euro is here to stay: German finance minister China's ZTE expected to take last step to lift ban Cramer Remix: The best way to play the stress test results Red Hat CEO on earnings-led stock drop: 'I would encourage investors to look long term' Apple launches free repair program for MacBook and MacBook Pro keyboards The founder of JetBlue is about to start a new airline Tesla is suing an ex-employee for hacking into its 'MOS' software — here's what that system does Morgan Stanley sees 'a pattern forming' of the space industry developing like self-driving cars Buy Intel shares because its CEO change will not hurt the chipmaker: Credit Suisse Xiaomi reportedly awards founder $1.5 billion in stock ahead of IPO Tesla reports another fire at Fremont factory Tesla shares drop after analyst raises concern over a rise in its services costs Increased threat of a trade war is ramping up fears of a 'full-blown recession' CarMax shares surge to record high, on pace for their best day in 4 years If energy can clear one hard-to-break level, it’s off to the races, chart watcher says Warren Buffett: 'Any time the market takes a sharp dive,' read this book Supreme Court rules warrants required for cellphone location data Trump urges OPEC to 'keep prices down' as oil cartel's meeting wraps up Cramer: Strength in tech and retail has 'masked' weakness in the broader market Buy EA shares because it is ‘building a Netflix for video games’: Needham What’s at stake in Turkey’s elections, and why Erdogan could actually lose Facebook’s ‘lack of accountability’ in its data scandal spurs European sustainability fund to dump shares Goldman Sachs: GE should suspend dividend for the next 18 months OPEC ministers strike deal on oil production levels Stocks making the biggest moves premarket: BB, MDT, URI, JPM, BAC & more Pro tips on taking great video of your vacation — right from your phone All 35 times the market did this, stocks ended the year higher Bitcoin tumbles after Japan watchdog orders exchanges to beef up practices against money laundering Husband cheating? Ashley Madison says member signups spiked in these cities last year James Comey: Public anger about migrant children is ‘why Trump ran’ from the policy Chinese stocks are flirting with bear market territory as trade worries fester BlackBerry posts quarterly loss Friday will likely be the year's biggest stock market volume day with big action in Apple, JP Morgan Rival Koreas agree to reunions of war-separated families US companies like Micron are accusing China of intimidation and outright theft to dominate tech Disney said it's willing to divest more Fox assets for to get a deal cleared by regulators Tesla is preparing to close a dozen solar facilities in 9 states Uber driver was streaming Hulu show 'The Voice' just before self-driving car crash: Police report OPEC heads into showdown over oil output, with Saudi Arabia and Iran on different sides Chinese media says US has 'delusions' as impact of trade war spreads YouTube introduces paid subscriptions and merchandise selling in bid to help creators monetize the platform Airbus says no-deal Brexit would force it to reconsider UK presence European stocks seen slightly higher ahead of OPEC meeting Euro zone hits 'historic moment' as it closes eight years of financial support to Greece Trade tensions are the biggest risk for the euro zone, the IMF says With freedom to drive, Saudi Arabia's women could change the economy Taiwan's Foxconn says biggest challenge is US-China trade war Euro zone agrees on debt relief package for Greece Asian shares set to decline, taking cues from Wall Street's losses; OPEC meeting ahead Chevrolet is bringing back the Blazer as a crossover Cramer Remix: It was the hottest group in the market until Red Hat reported SpaceX’s Falcon Heavy rocket wins Air Force certification and a $130 million contract Cramer goes out on a limb in support of chipmaker Micron Okta CEO explains why his cybersecurity company has a leg up on big-name tech giants like Microsoft Cramer: CEO change aside, Intel's stock is too cheap at these levels The head of Amazon's marketplace has lost most of his authority amid internal shake-up Alphabet reportedly may spin out molten-salt project with Bill Gates' $1 billion energy fund Red Hat slides on low guidance Tax automation company soars after Supreme Court decision Why Amazon is the winner of the Supreme Court sales tax ruling Why some women are adopting Tom Brady's anti-inflammatory diet Retail companies trying to catch up to the times are scrambling to buy tech start-ups Buy Square shares because its sales will soar from its new services to restaurants: Instinet Former retail CEOs hail online sales tax ruling: Old law rewarded a ‘form of tax evasion’ Mark Zuckerberg is the richest he's ever been — and he's about to beat Warren Buffett Tech pioneer Jaron Lanier says companies should pay for data: 'Let's get out of the manipulation business' Tesla enhancing security at Gigafactory, says they got call that ex-employee threatened violence Kroger shares on track for their best day in 9 years on strong earnings Goldman Sachs: Weak stock market returns are ahead even with booming earnings Trader builds $5 billion position after realizing he wasn't using test program; brokerage says he can't keep his profit Abraaj, a private-equity firm, files for provisional liquidation A wave of new environmental laws is scaring shipowners Glencore dodges American sanctions rather than spurn its friends A maverick French telecoms firm attempts Italian conquest Most stockmarket returns come from a tiny fraction of shares China considers its response to Donald Trump’s proposed tariffs Dutch finance chief opposes latest Franco-German push to bolster euro area Cramer: I have faith others can take charge at Intel after Brian Krzanich's ouster Supreme Court rules that states can force online shoppers to pay sales tax Jim Rogers is the latest aging investing guru to launch an ETF programmed to trade like them Olive Garden owner's shares jump after earnings beat, dividend hike Red-hot chip stock Micron rises as Wall Street gushes over cloud computing memory demand A tech goof might have just leaked the date for Amazon Prime Day Intel's Brian Krzanich forced out as CEO after 'consensual relationship' with employee The Amazon Fire TV Cube is so good I want one for every TV in my house Martin Sorrell says his exit from WPP was like being 'hit by the bus' Micron's quarterly results, forecasts beat on higher chip demand Goldman Sachs upgrades stumbling Verizon and Charter shares: 'The pipes are not broken'


House-flipping start-up Opendoor just landed $325 million to expand across the US

Opendoor, a start-up that buys and sells homes online, has just pulled in $325 million to expand its team, add more cities and move deeper into residential real estate.

The new funding pushed the San Francisco-based company’s valuation past $2 billion and includes capital from homebuilder Lennar, whose COO, Jon Jaffe, will be joining the company’s board, Opendoor said on Wednesday.

Founded in 2014 by a roster of tech entrepreneurs, including RentAdvisor co-founder Eric Wu and venture capitalist Keith Rabois, Opendoor aims to help homeowners sell their property more quickly by offering to buy it from them. The company uses a wealth of market data and software tools to understand how much it can make by buying, fixing up, listing and selling homes.

Because of that model, Opendoor is commonly referred to as a homeflipper. But Wu says that’s a misconception.

“We want to build the best customer experience at the lowest cost so that people can seamlessly buy, sell, or trade in a home,” Wu told CNBC in an interview.

Opendoor has now raised a total of about $645 million in equity and hundreds of millions more in debt. The company assists buyers by providing virtual tours of homes on its mobile app as well as through physical open houses. Opendoor says it purchases about $2.5 billion worth of homes annually, up over 225 percent from a year earlier, and has properties in 10 U.S. cities, with plans to reach 50 by 2020.

It’s facing fresh competition from real estate marketplace Zillow, which announced plans in April to begin buying and selling homes. That news initially caused Zillow’s stock to plunge on concern about the heavy costs associated with buying homes and because it could put the company in direct conflict with the realtors on its marketplace.

However, the stock price has since recovered and is now trading at a record, with a market value of over $12 billion.

“It’s validating and we are flattered,” Wu said, of Opendoor’s entrance into the market. “We are humbled to have like-minded competition in the category.”

General Atlantic and Access Technology Ventures led the round with Lennar. Andreessen Horowitz, Coatue Management, Travis Kalanick’s new 10100 Fund and property owner Invitation Homes also invested in the round, joining existing investors Norwest Venture Partners, GGV Capital and Khosla Ventures, where Rabois is a partner.

Softbank’s Vision Fund had been hoping to lead the Opendoor round, but the two sides never came to terms, CNBC reported in April.

Opendoor plans to use the capital to grow from a team of around 650 to nearly double that in the next year. It’s investing in technology to expand and scale its suite of services, like mortgages, titles, closing support and, eventually, warranty and home customization.

The company is also bolstering its Trade Up program, which lets customers purchase new homes from builders after selling to Opendoor. The initiative was developed with Lennar, which provided Opendoor with $100 million in debt financing late last year.

“We have spent the last year and a half working closely with the Opendoor team to create a first-of-its-kind ‘Trade Up’ program to meet the needs of both the consumer and the builder,” Lennar’s Jaffe said in a statement.

Source: Tech CNBC
House-flipping start-up Opendoor just landed 5 million to expand across the US

Comments are closed.