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.
- In April, Zillow announced a pilot program for a service similar to Opendoor.
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.