Backflip, a company that developed an application to assist investors in analyzing and financing properties for flipping, has successfully raised $15 million in Series A funding. This announcement was made in an April 29 press release received by Inman.
The funding round was led by FirstMark Capital, a firm known for its early support of companies like Shopify, Airbnb, and Pinterest. Other previous investors, including Vertical Venture Partners, LiveOak Venture Partners, and Revel Partners, also participated in this round, along with angel investors like Greg Waldorf, Rob Barber, and Gregg Freishtat.
Backflip was previously reviewed by Inman in July 2023, receiving praise for its combination of market analysis, strategic direction, and accessible financing options. The company aims to make real estate investing more inclusive and user-friendly through its mobile application.
The software facilitates funding through private or “hard money” sources, which is a common practice in real estate investing. To date, Backflip has funded 900 properties, with members reporting an average gross profit of $82,000 per property.
CEO Josh Ernst emphasized that Backflip’s goal is not just to enable house flipping but to redefine what it means to be a real estate entrepreneur. The company’s platform streamlines the underwriting process and accelerates real estate deals by integrating various components seamlessly.
While home flipping has decreased according to the 2023 U.S. Home Flipping Report by Attom, investors are showing increased interest in long-term rental properties. Backflip’s successful funding round may indicate a resurgence in flip projects for investors in 2024.
Overall, the proptech venture capital landscape has experienced a decline, with total investments in the sector dropping year-over-year. However, tools like Backflip that simplify real estate transactions continue to attract investors’ attention.
Backflip, a company that created an application to assist investors in analyzing and financing properties for flipping, recently secured a $15 million Series A funding round. Led by FirstMark Capital, known for backing successful companies like Shopify and Airbnb, the round also included previous investors and angel backers. Backflip’s software aims to simplify the process of flipping homes by providing access to funding and tools for aspiring real estate entrepreneurs. The company has funded 900 homes to date, with members reporting an average profit of $82,000 per property. Despite a decline in home flipping, investors are showing increased interest in long-term rental properties. Backflip’s funding may indicate a resurgence in flip projects for 2024, as the app’s ability to streamline transactions aligns with the current focus on proptech tools that improve deal processes. The real estate technology sector has seen a decline in venture capital investments, but Backflip’s successful funding round suggests promising opportunities for growth in the industry.
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