Announcing $17MM in Series A Funding

Flyhomes Founders Steve Lane and Tushar Garg
Flyhomes Founders Steve Lane and Tushar Garg

May 31, 2018

We started FlyHomes two and a half years ago with one simple goal—we wanted to make home buying better. The truth was, I had just bought a condo in Chicago as I was starting business school there and realized that this was a broken experience that had to change. In fact, I’d argue that while technology had changed nearly every aspect of our lives, the process of buying a home in 2015, was largely the same process my parents went through when they purchased the home I grew up in—in 1988. Nothing had really changed at all.

Fast-forward two and a half years later—we’ve now helped over 400 people close on more than $300 million in home value. We’ve launched on-demand home tours, we’ve built a unique brokerage model that builds subject-matter expertise and accelerates experience for each team member, we’ve enabled traditional home-buyers to compete with investors, and most recently leveled the playing field and increased certainty for buyers and sellers by launching our new Cash Offer program—which enables FlyHomes clients to write cash offers.

On days like today, it’s natural to reflect on what we’ve accomplished but that only lasts as few moments because as we’ve continued to grow— the thing that keeps getting clearer is that we’ve only scratched the surface on where we’re going. We imagine an entirely different home buying experience. We’re determined to make every single offer for MLS listed homes completely certain. We believe it’s just a matter of time before real estate companies will be inspecting homes themselves. Real estate companies will be providing financing to buyers in-house. Real estate companies will provide subscriptions to contractor services at a fraction of the cost that also include warranties. We’re building FlyHomes with four key areas of focus:

  • Level The Playing Field: We believe that the buyer that is willing to pay the most and can afford the home should be able to purchase it, and we believe that the seller should be able to sell the home to the buyer that’s willing to pay the most without having to make any trade-offs. Making offers certain will benefit buyers, sellers, and listing agents.
  • Flexibility: Real estate is the most complicated consumer transaction. We do not think today’s escrow process—where buyers and sellers sign, exchange money, and keys all on the same day—makes any sense. In a real estate transaction, somebody must move out, somebody must move in, somebody needs to get a loan, and somebody needs to pay off a loan. We believe providing money to the seller on day one, giving them flexibility to move out when it’s convenient, and then giving a buyer plenty of time to secure the best mortgage works better for everybody.
  • Taking A Stake: Historically, agents, lenders, and many other players in real estate transactions made a ton of money when deals close, but if anything went wrong—we’d all walk away without a scratch and it was the buyer and seller that were really left to pick up the pieces. As a trusted advisor, we believe we should be truly invested in our clients’ success and be willing to put our money on the line to make this a smooth process for buyers and sellers.
  • Reducing Costs: From lending to escrow, real estate has many horizontal layers that each individually spend a majority of their time acquiring clients. Vertical integration makes home buying more efficient and let’s all layers of the process focus on what they should be focused on: solving client problems.

Today, we’re incredibly humbled to announce that we’ve raised a $17 million Series A investment round led by Alex Rampell at Andreessen Horowitz. This investment round is a huge milestone for our company as it provides us capital to accelerate our growth in product, teams, and markets. But moreover, it brings on a partner that believes in this vision and in our ability to make it a reality. We’re on a mission to transform the home buying experience and improve the lives of consumers by delivering a better level of service at a fraction of the cost.

We’ve got work to do!

Stephen Lane

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