Real estate tech startup Side raises $ 50 million more at $ 2 billion valuation as it prepares for IPO – TechCrunch
Side, a real estate technology company that strives to turn independent agents and brokerages into boutique brands and firms, has raised “over $ 50 million” in a funding round that doubles its valuation to $ 2 billion .
The latest funding comes just three months after the San Francisco-based startup raised $ 150 million in a Series D funding round led by Coatue Management at a valuation of $ 1 billion. Tiger Global Management led the latest investment, which also included the participation of ICONIQ Capital and D1 Capital Partners. With the last injection of capital, the total of Side raised since its creation in 2017 now stands at more than $ 250 million. Matrix Partners, Sapphire Ventures, Trinity Ventures and 8VC led its first rounds.
Side says it is now “backed by the top three technology initial public offering (IPO) underwriters” and that the latest funding “paves the way for a future IPO.”
The startup made between “$ 30 million and $ 50 million in revenue” in 2020 (a wide range, we know), and expects to double its revenue this year. In 2019, Side accounted for more than $ 5 billion in annual home sales from all of its partners. Today, the company’s community of agent partners represents more than $ 15 billion in annual production volume.e. And he predicts that by the end of 2021, it will have closed over $ 20 billion in home sales, positioning the company “as one of the top 10 domestic brokers by volume.”
Today, Side supports more than 1,800 partner agents in California, Texas and Florida. It says it has seen a 200% year-over-year increase in sales of homes represented by agents in its three operating markets of California, Texas and Florida. The company plans to enter 15 new states by the end of the year.
Guy Gal, Edward Wu and Hilary Saunders founded Side on the premise that most real estate agents are “underserved and underestimated” by traditional brokerage models.
CEO Gal said existing brokerage houses are designed to support “average” agents and as such, more productive agents end up having to do “all the heavy lifting”.
Side’s white label model works with agents and teams by exclusively marketing their boutique brand, while providing the necessary back-end technology and support. The aim is to help partner agents to “develop predictably” their activities and improve their productivity.
The Side Way Thinking About Is The Way You Thinking About What Shopify Does For Ecommerce […] By partnering with Side, the best independent agents, teams and brokerage houses, for the first time in history, gain full ownership of their own brand and business without having to operate a brokerage firm, ”Mr. ‘Gal said at the time of the company’s last raise. . “When you spend years solving the problems of this very specific agent community, you are able to use software to generate tremendous efficiency for them in a way that has never been done before. “
Existing brokerages, he argues, actively discourage agents from becoming the best producers and teams, as agents who serve fewer clients may be forced to pay much higher commissions on each trade, meaning the incentives between brokerages and the best agents and teams are misaligned.
“The best producers want to grow and differentiate themselves, and brokers want them to do less business at higher fees and be one of the same under the same brand,” said Gal. “Side, rather than discouraging and competing with the best agents and teams, allows them to develop and grow their own business and their own brand. “