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Actual property tech startup Facet raises $50M extra at a $2.5B valuation because it preps for an IPO

Side, an actual property know-how firm that works to show brokers and impartial brokerages into boutique manufacturers and companies, has raised “$50 million-plus” in a funding spherical that greater than doubles its valuation to $2.5 billion.

The most recent financing comes simply three months after the San Francisco-based startup raised $150 million in a Sequence D funding spherical led by Coatue Administration at a $1 billion valuation. Tiger World Administration led the most recent funding, which additionally included participation from ICONIQ Capital and D1 Capital Companions. With the most recent capital infusion, Facet’s whole raised since its 2017 inception now totals over $250 million. Matrix Companions, Sapphire Ventures, Trinity Ventures and 8VC led its earlier rounds.

Facet says that it’s now “backed by the three prime know-how preliminary public providing (IPO) underwriters” and that the most recent funding “units the stage for a future IPO.”

The startup pulled in between “$30 million and $50 million in income” in 2020 (a variety, we all know), and expects to double income this 12 months. In 2019, Facet represented over $5 billion in annual dwelling gross sales throughout all of its companions. As we speak, the corporate’s neighborhood of agent companions represents over $15 billion in annual manufacturing volume. And it’s predicting that by the tip of 2021, it can have closed over $20 billion in dwelling gross sales, positioning the corporate “as a prime 10 nationwide brokerage by quantity.”

As we speak, Facet helps greater than 1,800 companion brokers throughout California, Texas and Florida. It says it’s seen a 200% year-over-year enhance in agent-represented dwelling gross sales throughout its three working markets of California, Texas and Florida. The corporate plans to enter 15 new states by 12 months’s finish.

Man Gal, Edward Wu and Hilary Saunders based Facet on the premise that almost all actual property brokers are “underserved and under-appreciated” by conventional brokerage fashions.

CEO Gal stated current brokerages are designed to help “common” brokers and, as such, the top-producing brokers find yourself having to do “the entire heavy lifting.”

Facet’s white label mannequin works with brokers and groups by completely advertising their boutique model, whereas additionally offering the required know-how and help wanted on the again finish. The purpose is to assist companion brokers “predictably develop” their companies and enhance their productiveness.

“The best way to consider Facet is the best way you consider what Shopify does for e-commerce […] When partnering with Facet, top-producing brokers, groups and impartial brokerages, for the primary time in historical past, achieve full possession of their very own model and enterprise with out having to function a brokerage,” Gal informed me on the time of the corporate’s final elevate. “Whenever you spend years fixing the issues of this very particular neighborhood of brokers, you’ll be able to use software program to drive monumental effectivity for them in a manner that has by no means been accomplished earlier than.”

Present brokerages, he argues, actively discourage brokers from turning into prime producers and groups, as a result of brokers who serve fewer shoppers will be pressured into paying a lot greater fee charges on each transaction, which implies the incentives between brokerages and prime brokers and groups are misaligned.

“High producers need to develop and differentiate, and brokerages need them to do much less enterprise at greater charges and be yet another of the identical underneath the identical model,” Gal stated. “Facet, fairly than discouraging and competing with top-producing brokers and groups, permits them to develop and scale their very own enterprise and model.”

It is a good time to start out a proptech firm

This story was up to date post-publication with an up to date valuation determine.