This article was co-written with Sib Mahapatra, former manager of strategy at Redfin, and now an entrepreneur and real estate tech enthusiast based in San Francisco. Raising $210 million is enough to get any business into the news. That’s especially true when the business in question is Opendoor, the two-year-old real estate startup that aims to bring simplicity to the housing market by purchasing homes directly from sellers and flipping them over to buyers after a quick spruce-up. This latest infusion of capital, announced in late November, brings Opendoor’s total war chest to $320 million. Based in San Francisco and led by CEO Eric Wu, Opendoor plans to use the capital to expand its active market presence from Phoenix and Dallas to 10 cities by the end of 2017. Investors and stakeholders in residential real estate have eyed Opendoor with wary interest since the company was launched as “Project Homerun” in July 2014 by former PayPal exec Keith Rabois...
- Opendoor -- the two-year-old real estate startup -- is making waves and is very well-funded.
- An analysis of MLS and public records shows market traction we can't ignore.
- The model comes with risk, but the path to $1 billion in revenue is believable.