Side, a real estate innovation company that works to turn representatives and independent brokerages into store brands and organizations, announced Monday that it has actually raised $150 million in Series D funding.
Coatue Management led the round, which brings San Francisco-based Side’s evaluation to $1 billion and overall financing raised to over $200 million since its 2017 inception. Existing backers Matrix Partners, Trinity Ventures and Sapphire Ventures likewise participated in the brand-new financing.
The round is significant because the amount raised is considerably higher than the $35 million Side raised in a Series C round in November 2019. Assessment too increased almost 7x compared to the $150 million appraisal at the time of its Series C. Sapphire Ventures led that financial investment and managing director Paul Levine, who was previously president and COO of Trulia (through its IPO and multibillion-dollar acquisition by Zillow), signed up with the business’s board of directors at that time.
The start-up drew in between $30 million and $50 million in profits in 2020, and expects to double income this year. In 2019, Side represented over $5 billion in annual home sales across all of its partners. Today, the business’s community of representative partners represents over $15 billion in yearly production volume.
Side was established by Person Gal, Edward Wu and Hilary Saunders on the property that a lot of real estate agents are “underserved and underappreciated” by standard brokerage designs.
CEO Gal stated existing brokerages are designed to support “typical” agents and as such, the top-producing agents end up needing to do “all of the heavy lifting.”
Side’s white label design deals with agents and teams by specifically marketing their shop brand name, while also supplying the required innovation and assistance required on the back end. The goal is to help partner representatives “naturally grow” their companies and enhance their efficiency.
“The method to think about Side is the way you think about what Shopify does for e-commerce…… When partnering with Side, top-producing representatives, teams and independent brokerages, for the first time in history, gain complete ownership of their own brand name and organization without needing to operate a brokerage,” Gal stated. “When you invest years resolving the issues of this extremely specific community of representatives, you are able to utilize software to drive enormous efficiency for them in a way that has never been done prior to.”
Existing brokerages, he argues, actively prevent representatives from becoming top producers and teams, since agents who serve less clients can be forced into paying much higher commission costs on every deal, which indicates the rewards in between brokerages and top agents and groups are misaligned.
“Top manufacturers want to differentiate and grow, and brokerages want them to do less company at greater costs and be another of the same under the exact same brand name,”Gal said.”Side, rather than preventing and completing with top producing agents and groups, enables them to grow and scale their own organization and brand.”
Today, Side supports more than 1,500 partner representatives throughout California, Texas and Florida.
The start-up prepares to spend its new capital on “significant hiring” and toward a growth outside of California, Texas and Florida — — the three markets in which it currently operates. It likewise plans to enhance its 300-plus headcount by another 200 employees.
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Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.