Opendoor, Zillow Rival Perch Raises $220M

Home buying and selling platform Perch has announced that it has raised $220 million in new funding.

The funding, which is a combination of equity to fund operations and debt to fund home purchases, was led by FirstMark Capital, with participation from Accomplice and Juxtapose. It will be used to scale Perch’s services for homeowners looking to sell their current home in order to buy a new one, which the startup calls “dual trackers.” These customers currently represent ~60 percent of all home buyers.

To make the process less stressful, Perch gives dual trackers an offer to purchase their home that is valid for 6 months. During that time, the site will help customers find their new home, and once they make an offer, Perch will allow them to close on both properties on the same day. In return, the company takes a 6 percent fee on the home the customer sells.

“We are solving one of the biggest problems in residential real estate — the inability of homeowners to line up the sale of their old home with the purchase of their new home. In the year ahead, Perch will continue to delight customers by bringing the entire home purchase experience, from discovery to closing, into the modern era. We’re thrilled that our investors share our vision for bringing a better home buying and selling experience to millions of homeowners,” Court Cunningham, Perch co-founder and CEO, said in a press release.

After launching in San Antonio in early 2018, Perch has expanded to Dallas-Fort Worth, with more markets planned. The startup has also grown its team to over 70 people.

“Perch has assembled one of the top teams in all of consumer tech and has quickly established itself as a disruptor in residential real estate. We are huge believers in the team’s approach to serving dual track customers and look forward to their continued growth,” said Rick Heitzmann, managing director at FirstMark Capital.