An online platform that allows real estate agents to compete for listings has raised $20 million in its first funding round.
BidMyListing scored a $15 million investment from Colorado-based Deer Park Road Management and raised a further $5 million in pre-seed funding, according to an announcement.
Based in Newport Beach, BidMyListing allows agents to bid on home listings — what the firm calls “virtual door knocking.” The company officially launched about six months ago, according to founder Matt Proman.
Agents on BidMyListing bid on properties using cash and can pitch their own commissions, listing terms and sell themselves. The homeowner can pick who will hold the listing, regardless of how much money the agent spent on the bidding process.
“We’re saying stop spending money on leads,” Proman said. “You can bypass Zillow.”
Once a listing agreement is finalized and signed, the seller of the home is paid the amount the agent bid.
BidMyListing’s funding round comes as venture capital firms have slowed pouring money into proptech companies over the last few months, as valuations for these firms have plateaued, or in some cases, plummeted.farr
“Flat is the new up in this market,” HomeLight founder and CEO Drew Uher told TRD in June, after his company had a $1.7 billion valuation based off a $60 million fundraise. The firm reached a $1.6 billion figure when it raised money in 2021.
Also, a number of proptech startups have laid off staff over the last six months. Most recently, Divvy Homes, which purchases homes on behalf of customers and subsequently locks them into three-year leases, laid off 12 percent of its staff earlier this month. The company had raised $200 million from Tiger Global Management and Caffeinated Capital.
Proman understands it’s difficult for proptech companies right now: “Eight out of 10 deals aren’t closing at all right now,” he said. “But VCs have to place their money somewhere.”
The post Proptech firm BidMyListing nets $20M in first funding round appeared first on The Real Deal Los Angeles.
Powered by WPeMatico