Proptech startup Homeward secures $105 million

Homeward announced it has secured growth capital of $105 million, including $20 million in equity and $85 million in debt. The $20 million of equity financing was led by Adams Street Partners, with additional participation by Javelin Venture Partners and LiveOak Venture Partners. The $85 million in debt was secured from multiple institutional lenders. The company has raised a total of $130 million.

Established in 2018, Homeward is a team of ~31 people. It allows agents to let customers buy the home they want using an all-cash offer, and then sell their current property at full market value.

Here’s how Homeward works: A user submits an online application for Homeward to calculate his home equity and provide him with approval. A user can then make an all-cash offer with Homeward’s funds to secure his next home. Later, he can move into his new home and rent it from Homeward for up to six months while he sells his existing home. And if the home doesn’t sell, Homeward will buy it from the user at a pre-agreed, market price. Finally, as soon as the old home sells, the user can buy his new one back from Homeward at the original price, plus a 2 – 3% convenience fee.

“We are a selective investor, particularly in the current environment, but Homeward stood out. The company is growing rapidly, has strong leaders with deep industry experience, and has impressive traction with agent partners.” – Jeffrey Diehl, Adam Street’s Managing Partner and Head of Investments.

“Most technology companies have come from outside the real estate space and have tried to cut the agent out. We’re taking a much different approach. We empower agents with institutional capital so they can enable their clients to buy before they sell.” – Tim Heyl, founder.

Homeward is available in Texas, Georgia and Colorado, with plans to offer its solution to agents and homebuyers nationwide.