Residential real estate marketplace Sundae announced on Tuesday it raised an $80 million Series C. This influx of funds brings the company’s total capital raised to $135 million and follows a $25 million round in June of 2020 and an additional $36 million round last December.
A hot real estate market across major cities across the United States has led several startups in the space to raise capital. San Francisco-based Side, a real estate technology company working to reinvent the traditional brokerage model, raised $50 million last month to expand into 15 states. Austin-based Homeward, a startup helping people buy homes with all-cash offers, raised $371 million in May — also with plans to expand into new markets.
Sundae, however, sets itself apart by focusing specifically on damaged or dated properties.
“For too long, homeowners trying to sell a house that needs love have been taken advantage of, selling for much less than their home is worth,” Josh Stech, CEO and co-founder of Sundae, said in a statement. “By introducing Sundae as a marketplace that connects sellers directly to hundreds of vetted local property investors, we’re cutting out the predatory middle man through a transparent, reliable and competitive offer process that ensures homeowners get a fair price and keep more of their equity.”
Sundae’s marketplace is free to sellers and there’s no obligation to accept an offer. According to the company, the average seller receives 10 offers in just three days. In addition to working with sellers, Sundae’s platform is used by realtors and investors.
The Series C round was co-led by Fifth Wall and General Global Capital. Notable athletes and celebrities including Will Smith, Kygo, NFL player DK Metcalf, Super Bowl champion Richard Seymour, Oakland A’s third baseman Matt Chapman and NBA players Isaiah Thomas and Andrew Wiggins, among others, also participated in the round.
The fresh capital will be used to expand into new markets, further invest in the platform and build brand awareness, according to a news release.
Stech and Andrew Swain co-founded San Francisco-based Sundae in 2018. At the end of last year, the company operated in four California markets. Now, Sundae operates in 14 locations across Texas, Colorado, California, Florida, Utah and Georgia, with plans to further expand. The company is actively hiring for dozens of roles ranging from virtual real estate agents to UX designers and engineers.
