Acrew Capital and Jeff Bezos Back La Haus $100M Round

La Haus Secures $100 Million in Funding to Expand Real Estate Marketplace

La Haus, an online real estate marketplace serving Mexico and Colombia, has successfully raised $100 million in a funding round. This includes $50 million in equity and a further $50 million in debt financing.

Series B Extension and Total Funding

This new capital represents an extension to the company’s Series B funding, initially closed in January. To date, Medellin, Colombia-based La Haus has amassed a total of $135 million for this round, and over $158 million in funding since its establishment in 2017.

Investors in the Round

The investment round was co-led by venture firms Acrew Capital and Renegade Partners. Notable participants included Bezos Expeditions (Jeff Bezos’ investment firm), Endeavor Catalyst, Moore Strategic Ventures, TIME Ventures (Marc Benioff’s firm), Rappi’s Simon Borrero, musician Maluma, and Gabriel Gilinski.

Existing investors also contributed, such as Greenspring Associates, Kaszek, NFX, Spencer Rascoff’s 75 & Sunny Ventures, Hadi Partovi, and NuBank’s David Velez.

Company Origins and Leadership

La Haus was founded by Jerónimo Uribe (CEO), Rodrigo Sánchez-Ríos (president), Tomás Uribe (chief growth officer), and Santiago Garcia (CTO). The founders initially connected while Jerónimo and Tomas were students at Stanford University, meeting Sánchez-Ríos there.

Before launching La Haus, the team successfully established and managed Jaguar Capital, a Colombian real estate development company responsible for over $350 million in completed retail and residential projects.

Valuation Details

The company has not disclosed the specific valuation at which the extension was secured. However, Sánchez-Ríos indicated that it represents “a significant increase” compared to the valuation in January.

Impressive Growth and Market Position

The Series B extension follows a period of substantial growth for La Haus. Transactions on its Mexico platform increased nearly tenfold in the second quarter of 2021, compared to the same period in 2020.

With over 500 homes sold through its platform (via lahaus.com and lahaus.mx), the company asserts its position as “the market leader in selling new housing in Spanish-speaking Latam by an order of magnitude.” La Haus projects to facilitate over $1 billion in annualized gross sales by year-end.

Mission and Vision

La Haus was created with the goal of simplifying homeownership and addressing “Latam’s extreme housing inequality.” The company aims to accelerate access to new housing by effectively connecting supply and demand through its technology, as explained by Sánchez-Ríos.

“Our chief product officer has recently developed a product enabling a fully digital process,” he stated. “We aspire to offer a home-searching experience comparable to booking a flight on delta.com, eliminating the traditional complexities.”

Digital Integration with Developers

The company achieves this by integrating its software directly with developers’ new projects. This allows users to view projects online and access real-time availability of units, completing the selection, signing, and payment process digitally.

Addressing the Housing Needs in Emerging Markets

The demand for new housing in the region and other emerging markets is substantial. However, the construction of new homes is often hindered by financial constraints faced by small and medium-sized developers, who build the majority of new homes in Latin America.

Furthermore, access to mortgages is limited for consumers, with banks offering significantly less credit than in the U.S., and often at less favorable terms.

Utilizing Capital for Financing Solutions

La Haus intends to leverage its new capital, particularly the debt portion, to expand beyond its marketplace role. The company plans to offer financing solutions to both developers and potential homebuyers.

By utilizing the data gathered from thousands of real estate transactions on its platform, La Haus aims to provide capital to developers and consumers “more quickly, with much lower risk and at better terms.”

Digital Homeownership in Latin America

The ability to purchase a home entirely digitally remains uncommon, even in the U.S. Achieving this in Latin America, a region historically lagging in digital adoption, is a significant accomplishment.

By the end of the year, La Haus plans to operate in every major metropolitan area in Mexico and Colombia, with the ultimate goal of accelerating the construction of new, sustainable homes and alleviating housing inequality.

Acrew Capital’s Perspective

Lauren Kolodny of Acrew Capital emphasizes that La Haus is developing a solution tailored to the specific challenges of the Latin American housing market, rather than simply importing models from the U.S.

“In Latin America, consumers have faced a real estate market that is difficult to navigate and stacked against them,” she explained. “La Haus is removing barriers to homeownership, enabling millions to achieve financial security.”

Kolodny highlighted the lack of a centralized MLS, high interest rates, lack of transparency, and limited online resources in the Latin American real estate landscape.

La Haus’ Approach to Market Barriers

La Haus is addressing these barriers by consolidating listings online, providing pricing transparency, and educating consumers about their financing options.

Acrew Capital initially invested in La Haus during its $10 million Series A round and has been impressed by the company’s subsequent growth. Kolodny praised the team’s deep understanding of the Latin American real estate market and their focus on new housing.

Future Plans and Capital Allocation

The La Haus team is eager to deploy its new capital. Sánchez-Río noted that “$50 million goes a lot further in Mexico and Colombia than in the U.S.”

“We are going to be very aggressive in Mexico and Colombia, and plan to expand from four to at least 12 markets by the end of the year,” Jeronimo stated. “We’re also excited to roll out our financing solution to developers and buyers.”