Opendoor Soars High On Public Market Debut
Venture-backed real estate startup Opendoor has debuted on the public markets by completing its merger with the blank-check firm Social Capital…
Venture-backed real estate startup Opendoor has debuted on the public markets by completing its merger with the blank-check firm Social Capital Hedosophia II, and debuted to exceptional interest from investors who have bestowed with a market capitalization of about $18 billion, compared to an enterprise value of $4.8 billion when Opendoor sealed its deal to go public this September.
Opendoor’s merger handed it roughly $1 billion of extra funding to fuel its growth. Given its stellar rise on its first day of trading, it seems investors are very confident with the company’s growth prospects and plans.
Opendoor is a house flipping company, or as it’s stylized these days, an ‘iBuying’ company. The company buys homes on quick notices from sellers with the aim of improving, repairing, and flipping them for a high price.
The major attraction to Opendoor is providing quick home sales to its customers, whom otherwise would take the traditional method of listing their properties and possibly waiting for a long time before finding a buyer.
Opendoor has a healthy business that produced $4.7 billion in revenue last year. That same year, the company reported a net loss of $339 million.
Before its public market debut, Opendoor was one of the highest-funded real estate startups, with a total of $1.5 billion in equity and debt funding. The company’s backers include big names like the SoftBank Vision Fund, General Atlantic, GGV Capital, Norwest Venture Partners, and SV Angel.
Opendoor was founded in 2014 by a group of entrepreneurs including Keith Rabois, a tech veteran who has held executive roles at PayPal, LinkedIn, and Square and is a current partner for the multi-billion venture capital firm Founders Fund; and Eric Wu, a serial entrepreneur who built and sold a previous real estate startup to Trulia, which is now owned by the real estate tech giant Zillow.