Upfront, a new real estate finance platform, today announced it has raised $2.5m in a funding round combining $1.5m in equity and $1m in debt.
The investment was led by Diagram Ventures with ROC Venture Group also participating. This financial injection enables Upfront to officially launch and begin its mission to transform the financial dynamics between real estate brokers and agents.
Upfront aims to reinvent how real estate agents manage their finances, particularly how they receive payments. Traditionally, agents face significant delays in commission payouts, often waiting up to three months, which can impose substantial financial strains.
Upfront’s model allows agents to access their earned commissions more swiftly, cutting down the waiting time and associated costs by up to 66%. This initiative not only alleviates financial pressure but also equips agents with essential tools to foster their economic health.
Additional facets of Upfront’s business include strategic partnerships and participations that broaden its impact and market reach. For instance, Upfront was selected for Equity Angels’ first accelerator cohort and is set to be featured at Blueprint, the largest global conference in the proptech industry.
Upfront co-founder and CEO Mukund Venkatakrishnan said, “Payday loans and credit cards exploit financial needs by trapping agents in a debt cycle with high interest rates. At a time when the real estate industry is facing big commission pressure and sales volume is at a historic low, we saw an opportunity to create real estate-native financial products that truly serve their users.”
Upfront’s co-founder and COO Pierre Calzadilla, said, “It’s expensive to be a real estate agent, and it’s time to bet on the critical role agents play in the home transaction process. Upfront believes in the critical services agents provide, and we will empower them to reinvest in their business and financial well-being.”
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