SAN FRANCISCO — Opendoor, an online real estate marketplace — has received a massive $400 million investment from the SoftBank Vision Fund. The company also announced it has secured access to more than $2 billion in debt financing from top banks.
The Vision Fund investment of $400 million is in addition to financing Opendoor previously raised from leading homebuilders, REITs and equity investors. Opendoor investors include Access Technology Ventures, Andreessen Horowitz, Coatue Management, General Atlantic, GGV Capital, Invitation Homes (a leading property owner of homes for lease in the U.S.), Khosla Ventures, Lakestar, Lennar Corporation (the leading homebuilder in the U.S.), NEA, Norwest Venture Partners, 10100 Fund and others. Total funding for Opendoor includes $1.045 billion of equity capital and $2 billion in debt financing.
As it rapidly expands to new markets across the U.S., Opendoor will use the funds to accelerate development of the first technology platform to make it easier to buy, sell and trade-in homes with one seamless transaction.
SoftBank Investment Advisers’ Jeffrey Housenbold will join the Opendoor board of directors.
“We’re thrilled to partner with SoftBank — they are visionaries with the ambition to transform entire industries,” said Eric Wu, Founder and CEO of Opendoor. “SoftBank understands that the traditional process of buying and selling a home is complicated, uncertain, and stressful for millions of people, and that Opendoor radically improves the experience. We’re excited to widen our ambitions as we launch new products, expand our services, and build an end-to-end experience for millions of people moving each year.”
The company expects to be in 50 cities by the end of 2020, currently operating in nineteen: Atlanta, Austin, Charlotte, Chicago, Dallas-Fort Worth, Houston, Las Vegas, Los Angeles, Minneapolis, Nashville, Orlando, Phoenix, Raleigh-Durham, Riverside, Sacramento, San Antonio, San Francisco, Seattle and Tampa. Headquartered in San Francisco, Opendoor has over 900 employees.
Since its founding in 2014, Opendoor has reinvented traditional home buying and selling to make it online, instant, and stress-free.
- For home selling, rather than deal with the hassle and uncertainty of the traditional process that can take up to 90 days and have a 10 percent chance of falling through, Opendoor customers receive an online offer within 24 hours and sell with complete control and flexibility.
- For home buyers, Opendoor makes buying on-demand and enables customers to visit, shop, and purchase homes 7-days a week — all from their mobile phone.
- For trade-in customers, Opendoor is replacing the process of managing two separate transactions and risk of a double move with one seamless experience.