Facet, an actual property expertise firm that works to show brokers and impartial brokerages into boutique manufacturers and companies, has raised “$50 million-plus” in a funding spherical that doubles its valuation to $2 billion.
The most recent financing comes simply three months after the San Francisco-based startup raised $150 million in a Collection 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 complete 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 high expertise 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. Immediately, 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 would have closed over $20 billion in dwelling gross sales, positioning the corporate “as a high 10 nationwide brokerage by quantity.”
Immediately, Facet helps greater than 1,800 companion brokers throughout California, Texas and Florida. It says it’s seen a 200% year-over-year improve 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 the majority actual property brokers are “underserved and underappreciated” by conventional brokerage fashions.
CEO Gal mentioned present brokerages are designed to help “common” brokers and as such, the top-producing brokers find yourself having to do “all the heavy lifting.”
Facet’s white label mannequin works with brokers and groups by completely advertising their boutique model, whereas additionally offering the required expertise and help wanted on the again finish. The purpose is to assist companion brokers “predictably develop” their companies and enhance their productiveness.
“The way in which to consider Facet is the way in which you concentrate on 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 instructed me on the time of the corporate’s final increase. “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 finished earlier than.”
Present brokerages, he argues, actively discourage brokers from changing into high producers and groups, as a result of brokers who serve fewer shoppers could be pressured into paying a lot increased fee charges on each transaction, which suggests the incentives between brokerages and high brokers and groups are misaligned.
“Prime producers wish to develop and differentiate, and brokerages need them to do much less enterprise at increased charges and be another of the identical below the identical model,” Gal mentioned. “Facet, quite than discouraging and competing with high producing brokers and groups, allows them to develop and scale their very own enterprise and model.”