PropTech platform Homeward has netted $105m in a funding round, which was comprised of both debt and equity.
The company received $85m in debt financing from multiple unnamed institutional lenders, and the $20m of equity was supplied by Adams Street Partners, Javelin Venture Partners and LiveOak Venture Partners.
Adams Street Partners acted as the lead investor.
With the close of the round, the company will look to purchase more homes for its customers, as well as extend its agent partnerships.
As part of the deal, Adam Street managing partner and head of investments Jeffrey Diehl will join the Homeward board of directors.
The PropTech claims that 43% of home buyers have an existing home they need to sell before they buy their next one, which delays their move indefinitely. The Homeward platform aims to solve this by empowering agents to make all-cash offers.
Homeward provides homebuyers with credit for their home equity up front. This gives them the chance to make an all-cash offer to secure their next home using the company’s funds. Moreover, they get a floor price guarantee on their existing home in case they’re unable to sell it for its full market value.
The PropTech plans to expand relationships with agents in Texas, Colorado and Georgia and will extend across the US.
Homeward founder and CEO Tim Heyl said, “Despite COVID-related volatility, we’ve continued to see strong customer and agent demand for our offering. Housing inventory is low right now, but demand remains high and customers are using our non-contingent cash offers to beat out other bidders.”
Last year, the PropTech secured $4m in equity and $21m in debt funding. The equity was supplied by LiveOak Venture Partners, the founders of fellow PropTech Opcity and renting platform Apartment List.
Genesis Capital, the independent investment and merchant banking firm, and Keystone Bank, a local Austin bank supplied the credit facility.
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