San Francisco Bay Area-based tech-enabled home renovation company Freemodel today announced it has secured a $19.5 million series A investment led by QED Investors, a leading venture capital firm in the fintech and proptech sector, in partnership with LL Funds, a leading provider of both growth equity and asset-backed debt. Other participants in the most recent round of funding include RWT Horizons, FJ Labs, 1984 Ventures, 1Sharpe Ventures, and Crossbeam Venture Partners. With this latest investment, Freemodel has now raised over $23 million since launching in 2020.
Pre-Sale Home Renovation Startup Freemodel Raises $19.5M in Series A Funding
The free model, which already covers 90% of the California real estate market, will use the newly secured investment to expand its service to additional states, starting with Texas and Florida in Q1 2023. They also plan to use the funds to continue developing the proprietary technology platform that empowers their team of local Project Directors to manage home renovations more effectively and efficiently.
“With the increase in interest rates and the slowing real estate market, agents have to go the extra mile to get the best results for their sellers,” says Freemodel CEO and co-founder John Garner. “Freemodel empowers our agent partners to sell a client’s home more quickly and at a higher price without the hassle or upfront cost of managing the renovations themselves.”
“It’s rare to find a business model in real estate that offers such clear value to its customers in a variety of market conditions”, says Lauren Morton, Partner at QED. “The combined power of ‘easy button’ renovations with a local designer, project management, and financing is helping homeowners sell their homes quickly, even in a tough market. QED is proud to back an experienced team with a strong founder-market fit. John’s deep background in prop-tech and keen sales acumen set him apart from other founders we’ve met.”
Since its debut, Freemodel has achieved 500% revenue growth year over year. Freemodel works with over 60 leading real estate brokerages and has helped their agent partners earn their clients over $33M in additional profit. Freemodel delivers a superior customer experience compared to other pre-sale home renovation services by using local, in-person design and project management in every market to deliver high-quality, custom renovations.
“Freemodel has solved the high financial barrier homeowners face when considering renovations. Everybody wins with Freemodel. Real estate agents win more listings, home sellers earn more profit, and home buyers get a beautiful move-in ready home,” says LL Funds Partner Jim Morrissey. “We’re proud to back a platform that directly delivers value to every stakeholder in a real estate transaction and we are excited to support Freemodel’s expansion to Texas, Florida and beyond.”