Across the country, investors are making up a larger portion of single-family home buyers. In the second quarter, investor purchases and dollar volume spent in the sector were more than double from the same period the year before, according to a Redfin study.
Ribbon will use the new funds to increase its annual transaction volume to $10 billion and become available in half the U.S. by 2023, according to Gan. Currently, Ribbon is authorized in Florida, Georgia, North Carolina, South Carolina, Tennessee and Texas.
With the $150 million in tow, Ribbon secured $625 million in total funding, according to company documents.
Greenspring Associates led the latest investment and its partner Seyonne Kang will serve as a board observer to Ribbon as part of the terms. Other investors include Greylock, Bain Capital Ventures, NFX, Nyca, Thomvest, Stone Bridge Ventures’ Jake Seid, First American Financial, Waterfall Asset Management, TriplePoint Capital, 75 & Sunny Ventures, Roofstock’s Gary Beasley, 1Sharpe Capital’s Gregor Watson, and Side’s Guy Gal.
Through its platform, Ribbon provides borrowers with upfront financing to make all-cash offers on home listings. The fintech aims to strengthen consumer bids against those from real estate developers and investors.
“If the consumer loses, agents and lenders lose,” Wei Gan, Ribbon CTO and co-founder, told NMN. “The housing market has shifted dramatically over the past year as a response to the global pandemic. Demand has skyrocketed, which means so have prices. Cash offers, as a result, are outcompeting mortgages by four times. Ribbon upgrades the lender mortgage into an all-cash offer.”