Another real estate company has raised a significant amount of money in a Series B investment round — this time, it’s Roofstock’s turn to preen with the announcement of $20 million in financing.
Roofstock is a website that connects real estate investors with tenant-occupied single-family homes for sale. It offers real estate agents a 1 percent referral fee for referring investors who buy property listed by Roofstock.
Roofstock has raised a total of $33.25 million in equity since the company’s formation in May of 2015.
Lightspeed Venture Partners led the financing round while Roofstock’s existing investors Khosla Ventures, Bain Capital Ventures, Nyca Partners, QED Investors and SV Angel contributed with “substantial participation.”
“Real estate is perhaps the greatest untapped sector for technological innovation in the U.S. today and Roofstock is quickly gaining traction with institutional and retail investors alike,” said Will Kohler of Lightspeed Venture Partners in a statement. “We were attracted to Roofstock because of the size of the market and deep experience and proven track record of their leadership team.”
Roofstock said it planned to put the proceeds of this round toward:
- National expansion
- Product development
- Engineering and data science initiatives
- Asset management platform rollout
- Broadening its reach to domestic and global partners
“The levels of demand and engagement we are seeing from investors of all shapes and sizes, from all over the world, highlights the fact that people are looking for a better way to invest in real estate,” said Gary Beasley, co-founder and CEO in the funding announcement.
Roofstock currently serves in Atlanta, Tampa, Jacksonville, Miami, Orlando, San Francisco, Riverside-San Bernardino and Southwest Florida. In July, it also expanded to Miami and Los Angeles.