Friday, February 3, 2023

Side raises $150M at $1B valuation to help real estate agents go it alone

In March 2021, Side, a real estate technology startup, revealed that it had raised USD 150 million in Series D funding. Side strives to transform agents and independent brokerages into boutique brands and businesses. Guy Gal, Edward Wu, and Hilary Saunders established Side with the idea that the majority of real estate agents underutilized and undervalued by conventional brokerage models. Gal claims that current brokerages are built to serve typical agents. The top-producing agents wind up doing all the work.

The round led by Coatue Management increased the valuation of San Francisco-based Side to USD 1 billion and brought its total capital raised since its founding in 2017 to USD 200 million. The new financing also included participation from the existing sponsors’ Matrix Partners, Trinity Ventures, and Sapphire Ventures. The sum raised is much more than the USD 35 million Side raised in a Series C round in November 2019, making this round noteworthy. Compared to the USD 150 million valuations at the time of its Series C. The valuation also climbed by about seven times. Paul Levine, managing director of Sapphire Ventures. Who had previously served as president and chief operating officer of Trulia (through its first public offering and multibillion-dollar sale by Zillow), joined the Side’s board of directors as a result of that investment.

In 2020, the business generated between USD 30 million and USD 50 million in sales. It anticipates doubling that amount this year. With all of its partners together, Side represented more than USD 5 billion in yearly house sales in 2019. The community of agent partners for the company currently accounts for more than USD 15 billion in annual output volume.

The white label strategy used by side raises helps agents and teams by exclusively selling their boutique brand while also offering the necessary back-end technology and support. The objective is to assist partner agents in increasing their productivity and predictably growing their companies. A customer should consider Side in a similar fashion that a customer might consider Shopify’s e-commerce capabilities. According to Gal, when top-producing agents, teams, and independent brokerages connect with Side raises. They, for the first time ever fully, own their own brand and company without having to run a brokerage.

Since agents who serve fewer clients may require to pay much higher commission fees on each transaction. CEO Gal claims that existing brokerages actively discourage agents from becoming top producers and teams. As a result, the incentives between brokerages and top agents and teams are out of balance. According to Gal, brokerages want top producers to do less business for greater fees and to be another like them operating under the same brand. While top producers want to expand and stand out. Top-producing agents and teams given the opportunity to develop and build their own businesses and brands. The site does not discourage or compete with them.

Meanwhile, more than 1,500 partner agents are being supported by Side raises across Florida, Texas, and California. The business intends to use its new funding to expand outside of the three markets. Where it presently operates—California, Texas, and Florida—by making major new hires. It also has ambitions to make its employee count cross the 500 mark by adding 200 more workers and 300+ staff members.

About Side-

Founded in 2017 and headquartered in California’s San Francisco, Side specializes in real estate, real estate technology, and brokerage operations. It works to support the best-in-class agents its works with. Additionally, Side is continually inventing technology that enhances agent productivity, legal compliance, marketing initiatives, and customer experience.

Side develops successful businesses and boutique brands that are entirely owned by agents into standalone brokerage houses, alliances, and high-performing agents. Side primarily works with the top agents. Providing them with exclusive technology and a first-rate support staff so they can be more productive, expand their business, and concentrate on helping their clients.

With a strong team of inSiders, it has completed USD 15 billion in transactions over the last three financial years and raised over USD 200 million from our top-tier investors.

About Coatue Management-

Coatue Management founded in 1999 and headquartered in New York. The company has an experience of 23 years and operates in 5 global offices. It works with more than 50 investment professionals and more than 24 data scientists and engineers. It has a total capital deployed in private investments of about USD 24 billion. The company has performed more than 40 exits. It has a presence in 27 countries with respect to its private portfolio. The lifecycle investment platform at Coatue has grown over the past ten years to include venture, growth, thematic, and structured capital strategies. The company has offices in New York, Shanghai, San Francisco, London, and Hong Kong.

Know More About More Business News:-

Venture Funding Surged To A Record Level At US$ 64 Billion In Q1


Please enter your comment!
Please enter your name here


Hot Topics

Related Articles