Homeward Bags USD 105 Million in Equity and Debt Financing
As part of the investment round, Jeffrey Diehl, Adam Street's Managing Partner and Head of Investments, will join the board. Jeff led an early investment in BoomTown, one of the leading CRM solutions for real estate agents
Fremont, CA: Texas-based Homeward secured USD 105 million worth of funding, including USD 20 million in equity funding and USD 85 million in debt financing. The equity funding round was led by Adams Street Partners, with additional participation by Javelin Venture Partners and LiveOak Venture Partners. The debt financing was secured from multiple institutional investors. Proceeds from the new investment round will allow Homeward to purchase more homes for its customers and expand its agent partnerships.
"Despite COVID-related volatility, we've continued to see strong customer and agent demand for our offering. Housing inventory is low right now, but demand remains high, and customers are using our non-contingent cash offers to beat out other bidders," said Tim Heyl, founder, and CEO at Homeward. The funding round was also participated by Jed Katz, Managing Director of Javelin Venture Partners, and formerly a Founder of Move.com and Rent.Net.
"Homeward solves a long-term pain point for Realtors and their clients by making offers more competitive and home sales more certain," said Jed Katz. "We think they have an A+ team and a solid model that's well-positioned to scale in a way the industry and the capital markets will embrace."
As part of the investment round, Jeffrey Diehl, Adam Street's Managing Partner and Head of Investments, will join the board. Jeff led an early investment in BoomTown, one of the leading CRM solutions for real estate agents. The investment in Homeward is consistent with Adam Street's focus on targeting resilient companies that need capital to fuel growth. "We are a selective investor, particularly in the current environment, but Homeward stood out," said Jeffrey Diehl. "The company is growing rapidly, has strong leaders with deep industry experience, and has impressive traction with agent partners."
Forty-three percent of home buyers already have a home in hand that they need to sell before buying the next one. This often causes homeowners to delay their move indefinitely, hurting both customers and agents in the process. Homeward works with agents to get their clients approved to make a Homeward all-cash offer. Agents go directly to Homeward's site and can register their clients in less than a minute. Homeward then works to approve their client to make an all-cash offer.
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