Luxury Presence Raises $25.9M Series B - Real Estate Marketing Software

Luxury Presence Secures $25.9 Million in Series B Funding

Luxury Presence, a company providing marketing solutions for real estate brokerages, has announced the completion of a $25.9 million Series B funding round. Bessemer Venture Partners spearheaded the investment, with participation from existing investors Toba Capital and Switch Ventures.

Investment Details and Company History

Notably, former professional basketball player Dirk Nowitzki made his inaugural institutional investment as part of this round, alongside a group of other angel investors.

Since its inception in 2016, Luxury Presence has raised a total of $33.3 million, with a previous funding round occurring in January 2020. The company’s offerings have expanded significantly over time.

Product Evolution and Customer Base

Initially focused on website creation, Luxury Presence now delivers a comprehensive real estate content management system. This system incorporates features like a bespoke home search tool for agents, alongside support for marketing, social media, and lead generation activities.

Currently, the Los Angeles-based company serves 3,700 clients. These include both individual real estate agents and larger teams. The majority of their customer base is located in upscale metropolitan areas throughout the United States and Canada, as stated by founder and CEO Malte Kramer.

Future Plans and Investment Allocation

The newly acquired funds will be allocated towards the development of innovative sales products for agents, with announcements anticipated later this year. Continued improvements to the platform’s design and user experience are also planned.

Furthermore, Luxury Presence intends to invest in expanding initiatives similar to its Global Collective. This network facilitates connections and opportunity sharing among its 30 members, all of whom achieve at least $1 billion in individual sales.

Growth and Expansion

Over the past year, the company has doubled its workforce to over 130 employees and anticipates another doubling in 2022. A significant portion of this growth will occur within the 25-person sales team.

Many new sales personnel will likely be stationed at the company’s recently opened second office in Austin.

Market Trends and Agent Collaboration

Malte Kramer highlighted how the recent increase in interstate migration, spurred by the pandemic, has fostered greater collaboration between real estate agents. The heightened demand for secondary residences has also significantly boosted the luxury real estate market in the last year.

Addressing Technology Adoption in Real Estate

Kramer emphasized the importance of seamless integration for real estate professionals, a demographic that has historically been slow to adopt new technologies.

Many agents currently rely on a fragmented approach to their technology needs.

Fragmented Tech Stack and the Need for Integration

“Agents often engage various specialists for distinct tasks,” Kramer explained. “They may utilize separate software tools and point solutions, employ a marketing assistant, or even rely on family members for SEO. This process is time-consuming and lacks cohesive integration.”

Bessemer’s Investment Rationale

Bessemer’s decision to invest was influenced by Luxury Presence’s efficient customer acquisition strategies and strong customer retention rates. Byron Deeter, a partner at Bessemer, noted that these factors, combined with clear signs of customer satisfaction, mirrored the success patterns observed in other prominent SaaS companies like Toast and Shopify.

“We closely monitored the company’s progress and observed a strong indication of genuine customer appreciation for Luxury Presence,” Deeter stated.