Profitable proptech Place raises $100M at a $1B valuation as Goldman Sachs leads its first round of funding – TechCrunch

Many real estate technology companies are developing technologies that may compete with or replace realtors.

One startup aimed at helping agents succeed and thrive with their technology and “bundled business services.” placeRaised $ 100 million in a Series A round with a valuation of over $ 1 billion.

Goldman Sachs Asset Management’s Growth Equity business led the investment, including participation from 3L Capital.

This round and the company got our attention for several reasons. For one thing, Place said it hadn’t raised external capital prior to this funding. Also impressive and refreshing He shared financial details and said he had made a profit from the first year of the business. By 2020, the company’s top-line revenues exceeded $ 85 million, with profits of more than $ 11 million. By 2021, the company expects top-line revenue to exceed $ 150 million.

The place is No Securities company. Rather, with a two-year history, the company claims to be “broker-agnostic technology and business service solutions” working with top real estate producers from various independent brokerage firms in the United States and Canada.

In a nutshell, Place wants to help real estate salespeople become business owners, regardless of the intermediary they are affiliated with. Over 10,000 agents are using the technology.

Bellingham, Washington startups target the “top 20%” of agents as customers. These agents claim to serve the majority of consumers who need to buy, sell, or invest in real estate. Place co-founders and co-CEOs Ben Kinney and Chris Suarez have direct knowledge of the industry. Each has 20 years of experience as a licensed real estate agent.

Place can provide agents with management support, marketing and branding, lead generation, accounting, legal, talent, back office infrastructure, and training for all positions, so “time to help buyers and sellers sell. The end result, according to Kinney, is that these agents have a “significant increase” in production, including increased sales, increased agent productivity, and more than double the ultimate profitability. I feel that.

Image credit: place

“We provide a technology platform that provides all the tools and services that top agents need to run their business all in one place,” Suarez told TechCrunch. “Our goal is to simplify the homeownership process for both agents and consumers.”

The company also provides buyers with real estate search, mortgages, ownership and insurance services as part of its efforts to act as a “one-stop shop.”

Most realtors do not receive benefits unless they are employed by a particular start-up that employs them as full-time employees.Kinney says that place It offers “industry-specific benefits” such as agent health insurance, which sells twice a month on average, stock purchase plans, and revenue sharing when agents recruit other agents. “Easy to hire and maintain” for the team.

In the luxury real estate industry, the startup is empowering brands such as The Bucher Group, Elizabeth Olcott and Associates, The Level Up Group, PDX Property Group and Spinelli Residential Group...

Going forward, the company will use the new capital to expand its products and services, continue to invest in technology, and, of course, invest in recruitment.Currently the place is According to Suarez, the number of employees will increase from 200 at the end of 2020 to 300 and is expected to increase from 700 to 1,000 by 2022. Startups also want to expand into new markets and go deep into existing ones. Currently, there are 100 in the United States and Canada as a whole.

Paul Pate, Place is the Vice President of Growth Equity Business at Goldman Sachs Asset Management We’ve seen strong commercial traction, especially for top agent teams, who first build software and sell it standalone under the Brivity brand.

At the same time, he said, Place realized that top agents needed more than just software.

“They need a full-stack product that completely abstracts the complexity of running a business. It’s rare to be able to clearly validate technology on a stand-alone basis and invest in a full-stack business,” Pate said in an email. I am writing in.

Goldman added that he sees the company’s ability to serve agents of any brokerage firm as differentiated.

“You don’t have to leave your current brokerage firm to join the place,” he said.

Of course, Place is not the only company in this area. In late June, Side, a real estate technology company working to transform agencies and independent brokerage firms into boutique brands and businesses, raised “more than $ 50 million” in a funding round. More than double that rating To $ 2.5 billion. At the time, the startup said it was preparing for an IPO.

Profitable proptech Place raises $100M at a $1B valuation as Goldman Sachs leads its first round of funding – TechCrunch Source link Profitable proptech Place raises $100M at a $1B valuation as Goldman Sachs leads its first round of funding – TechCrunch

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