GGV Capital Funds Real Estate Startup Quickly

Realm Secures $12 Million in Series A Funding to Empower Homeowners

Realm, a company focused on assisting homeowners in maximizing their property’s potential through a sophisticated data platform, has successfully completed a $12 million Series A funding round. The investment was spearheaded by GGV Capital.

Previous Funding and Company Growth

This latest funding builds upon prior investments from Primary Venture Partners, Lerer Hippeau, and Liberty Mutual Strategic Ventures, bringing the total capital raised by the New York-based startup to $15 million.

Platform Launch and Core Mission

Realm’s founder, Liz Young, introduced the platform earlier this year, aiming to establish a comprehensive resource for accessible and practical home improvement guidance.

Impact on Homeowners and User Expansion

To date, Realm reports having assisted over 20,000 homeowners in identifying an average of $175,000 in unrealized property value. The platform is experiencing a user base growth rate of 20% each month.

Differentiating Factors in Property Valuation

According to Young, Realm distinguishes itself from conventional valuation tools by forecasting a home’s potential worth following renovations, spanning months and years, rather than simply assessing its current market value.

Addressing a Gap in the Homeownership Experience

Young highlighted a significant void in the homeownership journey, stating, “Once you move, it’s a total black box.” She explained that homeowners often struggle to find reliable, unbiased advice for substantial financial decisions related to their properties.

Data-Driven Insights for Home Improvement

Realm leverages data gathered from sources like tax assessors and user contributions to provide homeowners with real-time projections of how property values will shift with improvements such as bathroom remodels or deck additions. Its algorithms analyze properties and suggest projects with the highest potential return on investment.

Robust and Unique Real Estate Data Set

Young emphasized the strength of Realm’s data infrastructure, stating, “The public data we acquire, the data we ingest from users, and the data that we build ourselves has allowed us to build the most robust and unique actionable real estate data set in the U.S.”

Extensive Database Coverage

Realm’s database, freely accessible to users, currently contains insights on over 70 million single-family detached homes throughout the United States.

The Importance of Zoning Regulations

A crucial component of Realm’s analysis involves zoning data, which clarifies building restrictions on individual properties. Understanding these rules is vital for accurate valuation, as square footage is a primary driver of home value.

Marketplace Expansion and Advisory Services

Realm’s marketplace, connecting homeowners with contractors, architects, and lenders to implement the platform’s recommendations, is presently available in California. Plans are underway to extend its reach to additional markets within the next year.

Demand for Expert Interpretation

While the platform offers free insights, Young noted that many users seek assistance in interpreting the data and translating it into actionable plans.

Future Development and Capital Allocation

The newly acquired capital will be allocated to enhancing the platform’s data insights and expanding its teams in data science, engineering, marketing, and operations. Continued development of proprietary data sets and models will provide homeowners with personalized analyses of over 70 million homes nationwide.

A significant portion of Realm’s growth is attributed to referrals from real estate agents and positive word-of-mouth from its existing user base.

GGV Capital’s Confidence in the Founder

Jeff Richards, GGV managing partner and newly appointed Realm board member, stated that the firm’s Series A investments are primarily based on the strength of the founder. “I met Liz when she was raising her seed round in July 2020 and was blown away,” he said.

GGV Capital’s Proptech Portfolio

Richards highlighted GGV Capital’s extensive experience in the proptech sector, with previous investments in companies such as Opendoor, Divvy Homes, Belong, and Airbnb. GGV currently manages $9.2 billion in assets.

Realm’s Position in the Evolving Proptech Landscape

Richards drew parallels to other successful proptech companies, noting that Zillow simplified home searching, Opendoor streamlined buying and selling, and Airbnb revolutionized short-term rentals. Belong is focused on long-term rentals.

A Unique Opportunity in Homeowner Empowerment

Richards believes Realm occupies a unique position in the market, stating, “No one has zeroed in on helping the individual homeowner manage their home, and that’s the opportunity area Liz is going after.” He revealed that GGV Capital issued a term sheet just 48 hours after a meeting with Young.

Untapped Potential in Residential Real Estate

Richards emphasized the vast potential within the residential real estate market, which remains largely untouched by technological innovation. He noted that home sales exceed $1.6 trillion annually, and home improvement represents a $500 billion+ market.

The Need for Modernization in Homeownership

“I’ve owned a home for 17 years and almost everything I do with respect to the home is the same as it was over a decade ago,” Richards observed. He pointed out that the primary technological advancement has been remote control of thermostats and security cameras, while core processes like renovations, contractor selection, and mortgage payments remain largely unchanged.

Young’s vision and the market opportunity led GGV to invest, anticipating significant growth and numerous winners in this evolving landscape.