Opendoor, a start-up that buys and sells homes online, has just pulled in $325 million to expand its team, add more cities and move deeper into residential real estate.
The new funding pushed the San Francisco-based company's valuation past $2 billion and includes capital from homebuilder Lennar, whose COO, Jon Jaffe, will be joining the company's board, Opendoor said on Wednesday.
Founded in 2014 by a roster of tech entrepreneurs, including RentAdvisor co-founder Eric Wu and venture capitalist Keith Rabois, Opendoor aims to help homeowners sell their property more quickly by offering to buy it from them. The company uses a wealth of market data and software tools to understand how much it can make by buying, fixing up, listing and selling homes.
Because of that model, Opendoor is commonly referred to as a homeflipper. But Wu says that's a misconception.
"We want to build the best customer experience at the lowest cost so that people can seamlessly buy, sell, or trade in a home," Wu told CNBC in an interview.