Real estate startup Sundae just raised $16 million after being backed by Founders Fund and QED Investors

Sundae cofounders Josh Stech and Andrew Swain

Real-estate startup Sundae just raised $16 million in a Series A fundraising round backed by Founders Fund and QED Investors.
Sundae aims to help those selling a rundown home get a fair price and avoid predatory investors.
House “flipping”, in which investors purchase properties and quickly sell them for a profit, rose to an eight-year high in 2019 – accounting for 6% of all home sales in the US.
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Sundae, a real-estate startup helping homeowners sell their rundown properties, has raised $16 million in a Series A funding round backed by QED Investors and Founders Fund.

House “flipping”, in which investors purchase properties and sell them quickly for profit, usually after fixing them up, rose to an eight-year high in 2019, at 6.2% of all home sales, according to ATTOM Data Solutions.

Sundae says it can help those forced to sell fast due to unforeseen circumstances — a death in the family, a divorce, or job loss — find the best deal and fend off predatory investors.

The team puts together video walkthroughs, 3D renderings of potential renovations, and structural reports, before sharing it all with potential buyers.

“For far too long, home sellers without the time or resources to get a house market-ready have been taken advantage of,” said CEO Josh Stech, who launched Sundae in California 18 months ago.

“Many property investors are known for predatory tactics that hurt sellers when they need help the most. We started Sundae to right this wrong, to be the advocate for this segment of home sellers by ensuring they get a fair price for their home and peace of mind for themselves and their families.”

The new funding round was led by QED Investors, with additional participation from Founders Fund, Susa Ventures, as well as a number of angel investors.

Frank Rotman, founding partner at QED Investors, said the “distressed residential real estate market is ripe for innovation.”

“There is a huge unmet need for solutions that make the selling process more efficient and transparent. As a team of operators, we’re excited to work with the Sundae team to build out their footprint, support their rapid growth and deliver a sorely-needed customer-centric approach to the market.”

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Source:: Business Insider


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