Clever Real Estate Raises $8 Million Series B From Strategic Investors

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Dec 02, 2021, 09:54 ET

ST. LOUIS, Dec. 2, 2021 /PRNewswire/ -- Clever Real Estate, the leading online platform for consumers to find real estate agents and save on commission, announced today $8 million in Series B funding led by Cultivation Capital, along with strategic investment from The Mortgage Collaborative (TMC) Emerging Technology Fund. The funds will be used to expand Clever's team and accelerate Clever's expansion into the mortgage vertical.

This news comes on the heels of a record year as Clever reached $4 billion in total real estate sold through its platform, pacing to sell over 6,000 homes in 2021. Clever grew annualized revenues 300%, achieving profitability in Q3 despite more than doubling its headcount to 75 since the start of the year.

Clever operates a portfolio of online content brands that reach over 11 million readers with expert real estate advice and education and the nation's largest discount real estate agent matching service. Through its platforms and concierge service, Clever connects consumers in all 50 states with vetted real estate agents who offer just 1% listing fees.

"Clever's model has helped consumers save over $80 million in fees, while helping over 12,000 top agents nationwide build their business," said Ben Mizes, Clever's co-founder and CEO. "We've proven that customers can choose both low fees and great service. And we're the only company doing this nationwide, from the big cities to the suburbs to rural areas."

In 2022, Clever will grow its team from 75 to 200 full-time employees, with much of the increase supporting the rapid growth of Clever's new platform for mortgage lenders.

"We partnered with agents to give consumers the power to choose better rates and better service. Now, we're doing the same thing for the mortgage industry," said Luke Babich, Clever's co-founder and COO. "Online lenders offer the best rates but lose out because they don't have the tools to support a home buyer through their whole journey. Clever fills this gap: We enable lenders to build a cohesive real estate team for their borrowers with a top agent, concierge service, and cash back at closing."

"The TMC Emerging Tech Fund invests in companies that will shift paradigms in the mortgage industry. We believe we found this type of company in Clever Real Estate." said Owen Lee, limited partner of TMC's Fund and co-owner of Success Mortgage Partners. "We're excited to support their continued success both with our investment and as early adopters of their lender platform."

This latest round brings Clever's total funding raised to $13.5 million. Cultivation Capital, which led the Series B, also led Clever's $3.5 million Series A in spring of 2019.

"The performance at Clever has been impressive," said Cliff Holekamp, co-founder and managing director at Cultivation Capital and member of Clever's Board of Directors. "Clever has over 1,300 customer reviews on TrustPilot.com with an average rating of 4.9 out of 5 stars. They have proven that they are able to rapidly scale their business while still maintaining the highest levels of service for their clients."

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About Clever Real Estate
Clever Real Estate is a platform that helps consumers navigate their real estate journey with free tools, expert advice, and matches to local vetted service providers. In all 50 states, Clever helps homeowners find and compare top local real estate agents who offer industry-leading low rates: just 1% listing fees for home sellers and up to 0.5% cash back for home buyers. For more information, visit https://listwithclever.com.

About Cultivation Capital
Cultivation Capital is an early-stage venture capital firm investing in software technology, life sciences, agriculture technology, and geospatial technology companies. Since its founding in 2012, the firm has invested in over 150 companies and is recognized as one of the most active early-stage investors in the United States. For more information, visit https://cultivationcapital.com.

About The Mortgage Collaborative
Based in San Diego, Calif., The Mortgage Collaborative was founded in 2013 by four notable industry leaders and is the nation's largest independent mortgage cooperative network. TMC is singularly focused on creating an environment of collaboration and innovation for small to midsize mortgage lenders across the country to reduce cost, increase profitability, and better serve the dynamic and changing consumer base in America. For more information, visit http://www.mortgagecollaborative.com.

SOURCE Clever Real Estate