Arrived Homes, the Seattle startup that helps people invest in single-family rental properties, has raised $25 million in new funding to continue expanding into new markets.
The money will also help Arrived add new types of assets such as short-term rentals and grow its team. The Series A round was led by Forerunner Ventures, with returning investors including Bezos Expeditions, Good Friends, Uber CEO Dara Khosrowshahi, former Zillow CEO Spencer Rascoff, Core Innovation Capital, PSL Ventures and Neo .
Arrived uses crowdfunding to help anyone buy equity in rental properties for as little as $100 and earn passive income while the company takes care of everything from acquiring the property to needed improvements and the management of daily operations. The idea is to open up access to real estate investment beyond high net worth individuals and institutional investors, and to use technology to help identify and manage rental properties.
Technology tools and big data help Arrived determine where best to buy, including cities, neighborhoods and properties. The data also provides information on the amount to be renovated for certain properties.
The startup was launched in 2020 by tech veterans including CEO Ryan Frazier (Simply Measured and Sprout Social); CTO Kenny Cason, (Simply Measured); and COO Alejandro Chouza, (Oyo and Uber).
“Since launching last year, the interest has been outstanding,” Frazier said in a blog post on Tuesday. “With our last batch of home IPOs, we saw traffic increase 100x and have now helped thousands of clients invest in over $40 million in real estate value, spread across over 100 homes and 16 cities.”
Chouza didn’t share specific revenue metrics, but told GeekWire that revenue has grown more than 10x over the past year. While demand for Arrived’s product has been strong, rising property prices have impacted its supply growth strategy.
“As the market has gotten hotter, we need to expand into new markets and asset types so we can find great investment opportunities,” Chouza said. “We now analyze over 40,000 real estate listings per month in 17 markets just to be able to acquire 20-25 new rental units for our investors.”
Keeping an eye on market uncertainty and volatility, Chouza said Arrived has become more selective in real estate acquisitions and is focusing on markets that the company believes will be more resilient during a potential downturn.
“We realize Arrived can play a key role in providing significant access to an inflation-hedged asset and cash flow,” he said. “And we provide access to that real estate with less exposure to risk than investing on your own.”
Last December, Arrived secured $100 million in new credit financing to fuel its expansion and ability to buy more homes across the United States. Arrived previously raised $10 million in equity and $27 million in debt funding in June to help scale its model.
The company has raised $35 million in equity and $127 million in debt financing to date and now employs 34 people.