Ribbon Raises $225M to Expand its Home Buying Platform

Ribbon announced it has raised $225m from Bain Capital Ventures, Greylock, NFX and NYCA for its approach to home buying – if a buyer can’t secure a mortgage in time then Ribbon will pay for the house itself and give the buyer extra time to get financing, while Ribbon collects rent.

The company – led by CEO Shaival Shah – launched in Charlotte, NC with plans to expand into 10 new markets by the end of 2019. It is focused on markets where homebuyers are having the hardest time securing their new homes and face stiff local competition from investors and corporate buyers. Ribbon is not a lender, and homebuyers will need to get a mortgage. If they share their financials with Ribbon, the company will introduce them to their lender partners. Last, Ribbon will typically back single-family homes with sale prices between $100k and $600k, and will also buy some townhomes or condos that receive traditional financing and allow for rentals.

“Buying a home is a milestone to be celebrated and enjoyed. However, if you are a first-time homebuyer or you need to sell your existing home prior to buying a new home, the current homebuying process is an intimidating and stressful experience. We solve this problem by buying and reserving a home for a family, so they can secure their mortgage in peace without the risk of losing the home they love. For the first time, we are bringing simplicity to the real estate transaction by absorbing all risk, so buyers, sellers and Realtors can focus on the joy of the home buying and selling experience.” – Ribbon .