The white hot iBuyer startup Opendoor, which lets prospective homesellers offload their properties quickly and entirely online for a guaranteed price derived by an algorithm, is in the process of raising $200 million in a funding round that would value the company at $2 billion, according to a report in The Wall Street Journal.

Opendoor has already raised at least $320 million in funding since its founding in 2014, and recently brought on $100 million in debt financing in January. The debt financing from the homebuilder Lennar was connected to an earlier capital raise of $135 million in part facilitated by the real estate tech-focused venture capital firm Fifth Wall Ventures.

Previously, the startup’s valuation had been pegged at above $1 billion.

People familiar with this ongoing round of talks told The Wall Street Journal that Opendoor would use this influx of $200 million to up its purchases of homes in the six areas it operates — Phoenix, Dallas-Ft. Worth, Las Vegas, Atlanta, Orlando, and Raleigh-Durham — and to expand into new markets.

Earlier this month, Opendoor posted job listings in Charlotte, Minneapolis and Nashville, suggesting upcoming expansions into those markets. Sources told The Wall Street Journal that Opendoor was “on the cusp of moving into” Charlotte and San Antonio, Texas.

Opendoor at one point pledged to expand to 10 new markets in 2017 and nationally in 2018 but has so far fallen short of those goals.

Sources close to the company have previously told Inman it would likely be a while longer before Opendoor attempts to expand any of its homebuying or selling operations to coastal metropolises like San Francisco, where it is based, or New York, where housing is more dense and the regulations potentially more complex.

Opendoor CEO Eric Wu said in an interview earlier this year that an IPO is on Opendoor’s long-term horizon.

Opendoor buys homes from sellers who are drawn to the appeal of a fast transaction and guaranteed sale. Opendoor then resells those houses on its website.

Reached by Inman, an Opendoor spokesperson declined to comment on or confirm the report in The Wall Street Journal.


Email Emma Hinchliffe

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription