Pre-Sale Home Renovation Startup Freemodel Raises $19.5M in Series A Funding
BURLINGAME, Calif., Jan. 31, 2023 /PRNewswire/ -- San Francisco Bay Area-based tech-enabled home renovation company Freemodel today announced it has secured a $19.5 million series A investment led by QED Investors, a leading venture capital firm in the fintech and proptech sector, in partnership with LL Funds, a leading provider of both growth equity and asset-backed debt. Other participants in the most recent round of funding include RWT Horizons, FJ Labs, 1984 Ventures, 1Sharpe Ventures, and Crossbeam Venture Partners. With this latest investment, Freemodel has now raised over $23 million since launching in 2020.
Freemodel, which already covers 90% of the California real estate market, will use the newly secured investment to expand its service to additional states, starting with Texas and Florida in Q1 2023. They also plan to use the funds to continue developing the proprietary technology platform that empowers their team of local Project Directors to manage home renovations more effectively and efficiently.
"With the increase in interest rates and the slowing real estate market, agents have to go the extra mile to get the best results for their sellers," says Freemodel CEO and co-founder John Garner. "Freemodel empowers our agent partners to sell a client's home more quickly and at a higher price without the hassle or upfront cost of managing the renovations themselves."
"It's rare to find a business model in real estate that offers such clear value to its customers in a variety of market conditions", says Lauren Morton, Partner at QED. "The combined power of 'easy button' renovations with a local designer, project management and financing is helping homeowners sell their homes quickly, even in a tough market. QED is proud to back an experienced team with strong founder-market fit. John's deep background in proptech and keen sales acumen set him apart from other founders we've met."
Since its debut, Freemodel has achieved 500% revenue growth year over year. Freemodel works with over 60 leading real estate brokerages and has helped their agent partners earn their clients over $33M in additional profit. Freemodel delivers a superior customer experience compared to other pre-sale home renovation services by using local, in-person design and project management in every market to deliver high-quality, custom renovations.
"Freemodel has solved for the high financial barrier homeowners face when considering renovations. Everybody wins with Freemodel. Real estate agents win more listings, home sellers earn more profit, and home buyers get a beautiful move-in ready home," says LL Funds Partner Jim Morrissey. "We're proud to back a platform that directly delivers value to every stakeholder in a real estate transaction and we are excited to support Freemodel's expansion to Texas, Florida and beyond."
To learn more about Freemodel's services, visit http://www.freemodel.com.
About Freemodel
Freemodel was founded in 2020 with a mission to streamline and improve the residential real estate sale process while giving homeowners a chance to get the maximum possible upside from the sale of their homes. The company partners with real estate agents to design, manage and pre-pay for their clients' home renovations, then the homeowner pays Freemodel out of escrow once the home sells. Founded by two Silicon Valley veterans with software and residential real estate backgrounds, Freemodel differentiates itself by offering a team of local designers and project managers who act as the main on-site point of contact for agents and clients. Their Project Directors bring deep expertise and local knowledge of the regions they service, making the process easier and more turnkey for realtors and sellers. In addition, Freemodel requires no credit checks and has no pre-determined project budget caps, allowing more flexibility for homeowners to reap the maximum possible profit from their investment. For more information, visit http://www.freemodel.com.
About QED Investors
QED Investors is a global leading venture capital firm based in Alexandria, Va. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in disruptive financial services companies worldwide. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages its partners' decades of entrepreneurial and operational experience, helping companies achieve breakthrough growth. Notable investments include AvidXchange, Bitso, ClearScore, Current, Creditas, Credit Karma, Kavak, Klarna, Konfio, Loft, Mission Lane, Nubank, QuintoAndar, Remitly and SoFi. For more information, visit www.qedinvestors.com.
SOURCE Freemodel
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