Updated Jun 13, 2018

Opendoor raises $325 million for home-buying and selling platform

Photo: Opendoor

Opendoor, a San Francisco startup that buys and sells homes, has raised $325 million in new funding led by General Atlantic, Access Technology Ventures, and home-builder Lennar.

Bottom line: Opendoor says that it's on track to purchase more than $2.5 billion worth of homes this year — up from a $1.3 billion run rate last October. But it doesn't disclose data on homes sold, and Opendoor's ability to profitably offload is viewed as a major risk factor.

Co-founder and CEO Eric Wu tells Axios that the staggering amount of equity funding ($645 million up to date) is to fuel company growth, not purchase new homes, which it finances via debt.

The deal: General Atlantic, Access Technology Ventures and Lennar co-led the round, and were joined by fellow new investors Andreessen Horowitz, Coatue Management, 10100 Fund, and Invitation Homes. Return backers include Norwest Venture Partners, Lakestar, GGV Capital, NEA, and Khosla Ventures.

Go deeper

Coronavirus spreads to more countries, and U.S. ups its case count

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The novel coronavirus continues to spread to more nations, and the U.S. reports a doubling of its confirmed cases to 34 — while noting those are mostly due to repatriated citizens, emphasizing there's no "community spread" yet in the U.S. Meanwhile, Italy reported its first virus-related death on Friday.

The big picture: COVID-19 has now killed at least 2,359 people and infected more than 77,000 others, mostly in mainland China. New countries to announce infections recently include Israel, Lebanon and Iran.

Go deeperArrowUpdated 8 hours ago - Health

Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.