Arrived Homes, the Seattle startup that helps people invest in single-family rental properties, has raised $25 million in new funding to continue its expansion into new markets.
The cash will also help Arrived add new asset types such as short term rentals, and grow its team. The Series A round was led by Forerunner Ventures, with returning investors including Bezos Expeditions, Good Friends, Uber CEO Dara Khosrowshahi, former Zillow CEO Spencer Rascoff, Core Innovation Capital, PSL Ventures, and Neo.
Arrived uses crowdfunding to help anyone purchase shares of rental properties for as little as $100 and earn a passive income while the company handles everything from property acquisition to necessary improvements and management of daily operations. The idea is to open up access to real estate investing beyond wealthy individuals and institutional investors, and use technology to help identify and manage rental properties.
Tech tools and big data help Arrived determine where best to buy, including what cities, neighborhoods and properties. The data also informs how much to renovate certain properties.
“Since launching last year, the interest has been remarkable,” Frazier said in a blog post on Tuesday. “With our last batch of House IPOs we saw a 100x increase in traffic and we have now helped thousands of clients invest in over $40 million in property value, spread across more than 100 homes and 16 cities.”
Chouza did not share specific revenue metrics, but told GeekWire that revenue has grown more than 10x over the last year. While demand for Arrived’s product has been strong, rising real estate prices have impacted its supply growth strategy.
“As the market has gotten more heated, we are having to expand to new markets and asset types so that we are able to find great investment opportunities,” Chouza said. “We now analyze over 40,000 homes listings per month across 17 markets just to be able to acquire 20-25 new rental homes for our investors.”
With an eye toward uncertainty and volatility in the market, Chouza said Arrived has become more selective in property acquisitions and focuses on markets that the company believes will be more resilient during a potential downturn.
“We realize that Arrived can play a key role in providing important access to an inflation-hedged and cash flowing asset,” he said. “And we are providing access to this real estate with less risk exposure than investing on your own.”
Last December, Arrived took on $100 million in new credit financing to fuel its expansion and the ability to purchase more homes across the U.S. Arrived previously raised $10 million in equity and $27 million in debt financing in June to help scale its model.
The company has raised $35 million in equity and $127 million in debt financing to date and now employs 34 people.