Houzz, the popular photo site used by homeowners to plan renovations, is finalizing a new funding venture capital round of $400 million that will value the home décor and interior design startup at about $4 billion.
According to Recode, the new venture capital investment is being led by Iconiq Capital, the investment firm that has managed money for the Silicon Valley uber-wealthy, including Mark Zuckerberg and Sheryl Sandberg.
Past Houzz investors GGV Capital and Sequoia Capital are some of the firms putting more money into the interior design firm in this round.
The company was founded in 2009 by CEO Adi Tatarko and her husband, Alon Cohen. Houzz features home décor photos meant to inspire homeowners doing renovation projects. The company’s first revenue streams included advertising and paid listings, but Houzz eventually added an eCommerce marketplace where merchants can sell the furniture and home décor found in photos. The company makes a commission from these sales, which sources say is the fastest growing part of the business.
With this latest round of venture capital funding, Houzz will have raised more than $600 million. And with the new valuation, it is likely the company will pursue an eventual IPO over attempting an acquisition.