Venture Capital

Roofstock Valued at Nearly $2 Billion With $240 Million Round

OAKLAND — Roofstock, an online platform for single-family rental (SFR) investing, has closed a $240 million Series E equity financing round, bringing the company’s valuation to $1.94 billion. SoftBank Vision Fund 2 led the financing with participation from existing and new investors including Khosla Ventures, Lightspeed Venture Partners, Bain Capital Ventures, Canvas Ventures, Citi Ventures, First American Financial, Expanding Capital, 7GC & Co., JLL Spark, SVB Capital, The Private Shares Fund, Masco Ventures, Newton Investment Management North America, Pegasus Tech Ventures, CAZ Investments, Moving Capital (aka Uber Alumni Investment Club) and DoorDash Angels.

Roofstock’s digitally enabled platform is transforming the $4 trillion fragmented, cottage industry of single-family rental (SFR) home investing into an increasingly relevant asset class. Both individual and institutional investors are discovering Roofstock’s growing service offerings and powerful data which power a robust ecosystem of SFR ownership and investing. With revenues nearly tripling year-over-year and organic investor platform traffic growing even faster, the company is in a period of hypergrowth at the epicenter of the rapidly developing SFR investment landscape. Since its founding, Roofstock has facilitated more than $5 billion in transaction volume, more than half of which came from the last year alone, including both individual investor transactions and some of the most significant portfolio transactions by institutional owners in the sector.

“There has never been a time quite like this for single-family real estate, and Roofstock is truly at the vanguard of making the market work for everyone,” said Gary Beasley, CEO and co-founder of Roofstock. “We’re grateful for the continued support from our new and existing investors and stakeholders who share our vision to make this a modern, radically accessible asset class. I could not be more excited to welcome our partners from SoftBank to join us on this ambitious journey.”

“Real estate is a huge asset class that has been relatively untouched by technology, and is often fragmented, analog and inefficient as a result. Roofstock makes buying and investing in rental homes seamless and accessible, and we saw a huge opportunity for the platform, particularly as interest in the sector continues to grow,” said Serena Dayal, Investment Director at SoftBank Investment Advisers. “We are excited to partner with Gary and the team as the company grows into a category leader and de facto resource for SFR investors.”

In 2021, Roofstock handled over $1 billion in trading volume in just its portfolio trading business, which is used by many major institutions already in SFR. Roofstock is also rapidly scaling its Investment Services offering, which allows institutional investors to leverage Roofstock’s full-stack platform to build their own bespoke SFR portfolios, for which Roofstock can also offer property management. In 2021, this Roofstock division purchased thousands of homes on behalf of institutional clients, representing over $1.2 billion in assets.

“Roofstock has built the modern real estate technology and financial rails to unlock the massive potential of this asset class for investors everywhere,” said Gregor Watson, co-founder and Chairman of Roofstock. “It has expanded beyond a marketplace for trading homes and has become a critical platform for anyone on a journey to generate wealth through real estate.”