A Miami real estate startup is on the move, with plans to bring its tech-enabled brokerages to new cities next year.
In buying his own condo several years ago, Home61 CEO Olivier Grinda found the experience stressful and unnecessarily complicated, and as a serial entrepreneur, he thought there had to be a better way. With Home61, which now operates in Miami-Dade and Broward counties, technology enables easy scheduling of viewings, anytime access to notes and analytics and a streamlined contractual process for buyers and renters, as well as sellers and agents. Agents unburdened by administrative work can better focus on service for clients with any budget, Grinda says.
Home61 announced Thursday it has raised an additional $4 million in venture capital to take its service nationwide, with plans to expand next to Chicago, Houston and Phoenix. The new round brings Home61’s total funding to $5.3 million.
“Miami is the heart of our company and a key city as it’s representative of the larger U.S. real estate market,” said Grinda, who was raised in France and ran startups in Brazil before moving to Miami in 2013. “The first thing we will do with this funding is continue to strengthen our presence in Miami before expanding to new cities. We currently have 55 agents in Miami and plan to nearly double that to 100 by the end of this year.”
Sign Up and Save
Get six months of free digital access to the Miami Herald
According to Grinda, Home61 agents average $70,000 in earnings in their second year, far more than the industry average, because Home61’s platform provides them with a steady stream of leads, intensive training and automation tools.
In 2016, the company did $44 million in sales and has done close to 900 closings since its Miami launch in 2015, Grinda said Wednesday. In March, Home61 launched an agent accelerator program modeled after tech accelerators. Agents complete a training program of up to 120 days in which they are taught how to use Home61’s technology tools and best practices for communicating with clients.
But for this underdog upstart, taking on the traditional real estate model is no easy feat. The U.S. real estate market, with $2.17 trillion in residential sales in 2016, is an enormous opportunity, but tech companies have yet to make significant progress nationally — more than 90 percent of the market is still owned by conventional real estate firms. Yet, venture capital interest has been on the rise for tech-enabled businesses. In 2016, U.S. real estate-tech companies set a record, raising $2.6 billion, and this year the sector is on track to lure about $3.4 billion, according to venture tracker CB Insights. In South Florida, real estate tech firms are adding up, too, including RealConnex and Gridics that have recently raised funding.
Investors in Home61’s new round include FF Angel, Founders Fund’s early stage investment vehicle that has also backed SpaceX, Facebook and Airbnb; global investor Fabrice Grinda of FJ Labs (also the CEO’s brother); and AGP Miami, an active angel network that has invested in 23 South Florida companies.
“The Home61 team is exceptional. We love the way they are making the process of finding your next home easier and more transparent, and are really excited to see them grow into new markets in the coming months,” said Raul Moas, managing director of AGP Miami, whose members invested $400,000 into Home61’s financing round.
Home61 plans to enter its next city in 2018, setting up a a physical presence there and finding a local partner to ensure a level of service consistent with its Miami operation, and then will roll out to additional cities, Grinda said.
Follow @ndahlberg on Twitter.