Relocation technology company Updater has closed on a convertible note round of funding for approximately $60 million, it was announced.
A member of the first ever NAR Reach startup accelerator program, Updater was primarily supported in its funding by Second Century Ventures, the strategic investment arm of the National Association of Realtors. In total, the company has raised more than $250 million. This is the third round in which Second Century has participated.
Mark Birschbach, SVP of Strategic Business, Innovation, and Technology at the National Association of Realtors, said the new funding is another step in helping Updater innovate with the ways agents and consumers work together.
“From the outset of our relationship years ago, we saw how Updater successfully addresses the core challenges consumers face when moving,” he said. “We’re pleased to deepen our investment and partnership.”
Updater offers a solution to make easy the tedium of finding and setting up new home vendor accounts when relocating. It helps with connecting utilities, establishing internet services and, overall, connecting families to their new communities.
Homeowners are linked to Updater through real estate agent referrals stemming directly from whatever transaction management software being used; thus, the company is tightly connected with brokerages around the country, and agents can pay $149 per year for a version of the software branded to themselves or their team.
Updater claims it can save relocating consumers up to an average of five hours, $325 and 21 emails and phone calls.
The product provides the industry — members of NAR — with an array of data products to help analyze market activity, strategize marketing plans and predict relocation trends.
The funding allows for the option “to raise approximately $15 million in additional capital, for a potential total $75 million convertible note series,” the release stated. “The holders of the convertible notes have the right to convert to equity upon a public listing at a future date.”
Funding will be dedicated to sustaining Updater’s current growth trend, which has seen the company hire more than 100 employees in 12 months. It now employs approximately 250 people.
New talent will be focused on product conception and delivery for 2022, as well as on supporting current product initiatives.