Opendoor surpasses its funding goal and grows in valuation

Recently, Opendoor, a buying and selling real estate platform, had looked to raise $200 million on a $3.7 billion valuation. That round has closed and the amount the startup actually raised is much higher than they initially expected. Opendoor has raised $330 million, and according to sources, the valuation is now at $3.8 billion.

This latest round included previous investor General Atlantic, with participation from Hawk Equity, the SoftBank Vision Fund, Access Technology Ventures, Lennar Corporation, Fifth Wall Ventures, SV Angel, Norwest Venture Partners, NEA, GGV Capital, Khosla Ventures and GV, along with other, unnamed investors.

Opendoor has now raised $1.3 billion in equity, with some $3.0 billion in debt financing for buying properties.

Opendoor’s funding underscores a couple of big themes. The first is the “safe as houses” maxim. That is to say, the housing market — despite some huge dips resulting either from wider economic tides, or simply scandalous mismanagement around, for example, sub-prime lending — continues to be a major draw not just for investors but also consumers.

“Our business is designed to operate in up markets, down markets and flat markets,” co-founder and CEO Eric Wu said. “During a slowdown, it becomes increasingly more painful to sell a home, which impacts mobility for homeowners and increases the need for reliable home sales through products like Opendoor. It is our responsibility to manage that risk and charge the proper fees to account for the volatility.” The company says that in 2018, more than 800,000 people toured Opendoor homes.

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