Oakland-based real estate investment startup Roofstock has clenched $50 million in Series D equity funding, bringing the platform’s total funding to $133 million since 2015.
SVB Capital led the round, which included contributions from previous investors Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures, and new investors Citi Ventures, Fort Ross Ventures and 7 Global Capital.
The $50 million will be used to fuel improvements in the company’s data science, product and engineering capabilities, retail supply and distribution network growth, and the launch of Roofstock Platform Services, a new product that allows institutional investors to build tailored portfolios of single-family rental homes with assistance from Roofstock advisors.
“Roofstock makes it easy for anyone, no matter where they live, to add real estate to their investing strategy, with minimal overhead and no prior knowledge needed,” Roofstock co-founder and CEO Gary Beasley said in a press release. “This funding is a validation of our work to lower the barriers to entry and level the playing field for real estate investing.”
“Roofstock gives individual investors the same level of information, access and operational support that used to be available only for large institutions,” Beasley added.
Roofstock helps institutional investors trade single-family rentals and offload them to smaller investors, and manages properties on behalf of both groups. Beyond reducing the rigmarole of the trading process, the company says it reduces the cost of buying and selling single-family rentals.
Roofstock charges sellers a commission of 2.5 percent and a buyers a commission of 0.5 percent. The company also offers a referral fee for real estate professionals who send investors to Roofstock, through which agents can get a 25 percent cut of Roofstock’s listing commission.
SVB Capital managing partner Sulu Mamdani said he’s confident in Roofstock’s place in the $3 trillion single-family home rental industry, as the company recently passed the $2 billion transaction volume mark.
“Roofstock is in the vanguard of the rapidly-growing proptech space,” Mamdani said in a prepared statement. “As startups continue to broaden access to financial services, we see real estate as an incredibly attractive asset class for retail investors looking to go beyond the typical stock and bond portfolio.”
Citi Ventures Managing Director and Global Head of Venture Investing Arvind Purushotham echoed Mamdani’s sentiments, saying that capital investors recognize the potential for continued growth in the single-family rental industry and are ready to jump in.
“At Citi Ventures, we look to invest in companies that are revolutionizing financial services. That’s why we’re excited to partner with Roofstock as it makes real estate investing more accessible than ever before,” Purushotham said.
“Roofstock is a prime example of the potential we are seeing in the real estate market as it makes investing in single-family rentals simple and provides the tools investors need to manage their portfolios efficiently.”
Create your own success story at Inman Connect New York, Jan. 28-31, where over 4,000 industry professionals gather to forge new relationships, share tactical takeaways and discover the latest technology to boost their bottom line.
Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.