Real estate investing is often thought of as only available to the uber-wealthy, however, one Seattle startup is growing its platform to make real estate investment accessible to more people.
On Tuesday, Arrived Homes announced that it raised $25 million in a Series A funding round that was led by Forerunner Ventures, a San Francisco-based VC firm. The round also included participation from Bezos Expeditions and Good Friends, a VC founded by the CEOs and founders of B2C startups Warby Parker, Harry’s and Allbirds.
Prior to the Series A raise, the Seattle-based startup raised a $10 million seed round, according to Crunchbase. Arrived Homes has also raised $127 million in debt financing.
Arrived Homes was founded on the idea that real estate investing should be available to everyone. Through its website, people can purchase shares of single-family rental homes. Unlike other forms of real estate investment, investing in rental properties allows investors to still see the potential return on investment, while not having to manage the property themselves.
“Over the last year, we’ve been inspired by the stories we’ve heard from our investors about what it means to obtain the benefits of home ownership through our platform,” Ryan Frazier, CEO and co-founder of Arrived, said in a statement. “This new fundraise will allow us to continue breaking down barriers and help our customers access the wealth-building potential of single-family rentals.”
According to the company, it is the first company to get SEC approval to sell shares for single-family rental properties. Arrived has over 100 fully-funded properties totaling a value of $40 million across 16 metropolitan areas.
With the new funding, the company will look to expand its licensure to launch single-family rental and short-term rental properties in Florida, Texas, Nevada and Indiana.
“Today’s investors want to be empowered through the self-service tools they’ve grown to love, like Coinbase and Robinhood,” Brian O'Malley, partner at Forerunner Ventures, said in a statement. “Arrived Homes is the only platform that allows all types of retail investors to get the inflation-hedged, cash-flow generating benefits of real estate, which will be increasingly important as debt continues to underperform and the crypto and equity markets suffer from increased volatility.”
