Nomad Homes Raises $20M to Revolutionize European & Middle Eastern House Hunting

Addressing Real Estate Challenges in Emerging Markets

In many countries, a centralized Multiple Listing Service (MLS) doesn't exist to facilitate home buying and selling. This absence frequently complicates transactions, forcing buyers to sift through potentially fraudulent or duplicated listings with limited pricing transparency – a stark contrast to the system in place within the United States.

Nomad Homes: A Personalized Approach to Property Acquisition

Nomad Homes, a property technology startup, is actively working to resolve these issues. Their goal is to establish a personalized real estate purchasing experience throughout Europe, the Middle East, and Africa – a region representing a substantial $20 trillion real estate market, as stated by CEO Helen Chen in an interview with TechCrunch.

Chen describes their service as analogous to Stitch Fix, but for real estate. Instead of traditional, exhaustive listing searches, Nomad Homes employs a matching system. Users complete a ‘style quiz’ to identify their preferences, and the platform then presents suitable properties.

Securing $20 Million in Series A Funding

Nomad Homes recently announced a $20 million Series A funding round. This was co-led by 01 Advisors, an investment fund established by former Twitter executives Dick Costolo and Adam Bain, and The Spruce House Partnership.

The funding round also saw participation from a diverse group of both new and existing investors. These include Goodwater Capital, HighSage Ventures, Abstract Ventures, Partech, Class 5 Global, Precursor Ventures, and Alta Park Capital.

Notable Angel Investors

A number of prominent angel investors contributed to the round. Among them is Spencer Rascoff, co-founder and former CEO of Zillow and Pacaso, investing through his firm 75 & Sunny. Other investors include Opendoor CEO Eric Wu, former Compass COO/CFO David Snider, Flyhomes CEO Tushar Garg, Landis co-founders Cyril Berdugo and Tom Petit, and DST Global partner Saurabh Gupta.

Company Origins and Growth

Founded in 2019 by Helen Chen, Dan Piehler, and Damien Drap, the company has now raised a total of $24 million. The founders initially connected while navigating the challenges of finding housing in a new city.

Their combined experience includes roles at Blackstone, Addepar, and Uber. Furthermore, Chen paused her studies at the Stanford Graduate School of Business to dedicate herself to launching the company.

Building a Regional MLS and Providing Expert Support

Nomad Homes is actively constructing its own MLS specifically tailored for the region. This is coupled with the application of technology to enhance the expertise of local customer service professionals.

The aim is to equip home buyers with comprehensive information throughout the entire process – from the initial property search to securing financing and completing all necessary documentation.

“Nomad Homes has built an incredible platform that is shaping the future of real estate across EMEA,” stated Dick Costolo, managing partner of 01 Advisors. “The team’s work is increasing market liquidity and streamlining the consumer experience. We’ve backed similar transformative companies in the U.S. and are eager to support these founders and the team as they expand.”

Expansion and Future Plans

Following its launch and seed funding in 2020, the platform is currently operational in Paris and Dubai. The company is now extending its reach into Southern Europe and simultaneously expanding its teams in both the United States and Europe.

Transaction volumes have increased more than sixteenfold in the first half of the year. This growth prompted the Series A funding, which will be used to accelerate expansion into new markets and to invest heavily in technology and product development to further enhance the customer experience, according to Chen.

A portion of the funding will also be allocated to the development of fintech products and to doubling the size of the current team of 32 employees by the end of the year.

“We will continue to prioritize delivering an exceptional customer experience and broadening our service offerings across more markets,” Chen added. “We are also very pleased to have such a strong group of investors. Their multistage experience will be invaluable, particularly the insights from Spencer from Zillow and Eric from Opendoor, both leaders in the industry.”