Residential real estate marketplace Sundae has announced it closed $36 million in Series B funding on Tuesday, led by QED Investors and with additional participation from Founders Fund, Susa Ventures, Navitas Capital, Prudence Holdings and General Global Capital.
This round of funding comes after the San Francisco-based company announced it closed $16.5 million in Series A funding this June.
“Since our Series A financing earlier this year, Sundae’s marketplace has seen record growth,” Josh Stech, Sundae cofounder and CEO said in a statement. “Our momentum speaks to the massive need for a more reliable way for sellers of homes that need love.”
Sundae pairs sellers of distressed properties with potential buyers, claiming that homeowners can close in as little as 10 days or wait and choose to remain in the home for weeks after the sale.
“Many property investors continue to take advantage of sellers who don’t have the time or resources to get their house market-ready,” Stech said. “With this new funding, we’re thrilled to continue on our mission to help owners of dated or distressed property get a fair price for their home without any work or worry.”
Sellers go to Sundae’s marketplace to request an offer, then a member of the company sets up a brief home visit, or virtual walk-through, and makes an offer on the home. If the seller accepts the offer and an inspection is completed, Sundae offers a $10,000 cash advance prior to closing to help homeowners with moving costs and other expenses. The property is then offered on its marketplace for investors to bid on.
Sundae doesn’t charge closing costs or agent fees, but charges buyers in its investor marketplace a fee when it “assigns” them a property.
“The concept of homeownership is fundamentally changing,” said Frank Rotman, founding partner at QED Investors in a statement. “This is particularly true given COVID-19 which has caused more uncertainty and forced people to rethink their real estate decisions.”
“Homeowners are looking for solutions that make the selling process more efficient, transparent, and reliable, particularly for the distressed property segment,” Rotman said. “Sundae’s rapid growth is a testament to their differentiated offering and the trusted brand they’ve created through a customer-centric approach to the market.”
Sundae is headquartered in San Francisco and has regional headquarters in Los Angeles and Atlanta.