Deals

Here’s investor Keith Rabois’ bold new home-selling startup: OpenDoor

Image Credit: Jo Anslow/Flickr

Entrepreneur and investor Keith Rabois teased us with his fascinating plans to help people sell homes fast with the help of the Internet. But he wouldn’t give us the details.

But now we know the secretive outfit’s name, we can identify a key cofounder, and we see that it has funding.

The startup’s name is OpenDoor. It has raised at least $6 million out of a $9 million round, according to a filing submitted today to the U.S. Securities and Exchange Commission.

And who submitted the SEC filing, you ask? Eric Wu, the founder of stealthy neighborhood data startup
Movity, which Trulia bought in 2010. Wu also founded RentWiki, which was renamed RentAdvisor, which Apartment List acquired last year.

Rabois’s startup was code-named HomeRun, and the seed for the idea was planted more than a decade ago, as VentureBeat reported in April.

“My friend [PayPal and Palantir cofounder] Peter Thiel suggested that I come up with an idea to innovate in residential real estate,” Rabois told VentureBeat in April. “It’s the largest part of the economy unaffected by the Internet. And that was definitely true then, and even with things like Trulia and Zillow, it’s fundamentally true today. But the process of [selling a home] hasn’t been transformed by technology.”

Now, that could change. OpenDoor will launch in July, its website promises.

The startup will “work with sellers directly to purchase home[s],” “work with local partners to rehab, maintain, and improve our portfolio of properties,” and “partner with local brokers and Realtors to market, list on [the multiple listing service], and resell to retail buyers and investors,” according to the site online now at opendoor.com.

That description sounds even more interesting than what Rabois told us originally. It shows that OpenDoor will do a lot more than just run a self-service website.

“We don’t have more information to add at this time,” Rabois wrote in an email to VentureBeat after this article was posted.

Additional reporting by Kia Kokalitcheva

More about the companies and people from this article:

Khosla Ventures is a venture capital firm run by people who listen to, analyze, and advise entrepreneurs. We manage a main fund that supports early- and late-stage investments and a seed fund for developing very early-stage experiments... read more »

Trulia gives home buyers, sellers, owners and renters the inside scoop on properties, places and real estate professionals. Trulia has unique info on the areas people want to live that can’t be found anywhere else: users can learn ab... read more »

Keith Rabois is a member of the Khosla Ventures investing team, joining in March 2013. Most recently, Rabois was Chief Operating Officer at Square where he oversaw the company’s business operations including marketing, communication... read more »

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52 comments
Robert Grand
Robert Grand

We're looking for a JV Partner to develop HOMEREP into a National Real Estate Trading Platform: (800)HOMEREP (888)HOMEREP Home Real Estate Professionals http://www.HomeRep.com

Sabrine Zo
Sabrine Zo

Talking about a not launched product sounds like PR. We want to touch and feel the product!

Anthony Bustamante
Anthony Bustamante

Very interested in seeing how they plan to do this at the nuts and bolts level. Correction, bits and atoms level. 8-)

Chip Souza
Chip Souza

All those things are already being done, so why the hype? Cause now you can use a smartphone? Not a big deal just marketing.

John Wilson
John Wilson

None of this sounds different than what's already available. Did the author get a chance to ask a question from the perspective of someone who wasn't already a believer? Or, from the perspective of a consumer who already has a myriad of options? This really sounds like Silicon Valley believing its own hype.

Brian Hickey
Brian Hickey

Keith,

If you want or need help...let me know.  Been there, doing that :)

Brian

Jaakko Ahti Aaltonen
Jaakko Ahti Aaltonen

Tällaiset talot San Franciscossa ovat kallita. Omistajina on usein kaksi hyväpalkkaista miestä. Tällaisia taloja on paljon ja ovat upeita.

Patrick Daday
Patrick Daday

Steve Zaleski keep an eye on this startup/website

Ryan M Bertoldi
Ryan M Bertoldi

Haha..sounds like, every real estate agent.in.the.world.

Ryan M Bertoldi
Ryan M Bertoldi

Sounds a lot like my job at Lamudi...except we're now in 27+ countries. Good luck partnering with "rehab" companies..as it will most likely drive the price up on restoration in a field that is filled with scammer companies that take half the money and do half the work before leaving unfinished.

Brandon Kirk
Brandon Kirk

Sounds like predatory gentrification is coming to a community near you.

Mason Estep
Mason Estep

Shea put your phone down and watch the movie.... but look at this startup later yum

Julien Fruchier
Julien Fruchier

Seems to completely disregard the fact that buying and selling a home is an extremely emotional experience for most people. Choosing an agent is often a big ordeal. I'll be watching with interest...

Tom Rutz
Tom Rutz

Variable rate loans are back.

Bonny Lai
Bonny Lai

What differs from this company from all the other investors / flippers already in the real estate market, buying homes, fixing/rehabbing, reselling?

Clifford Charles
Clifford Charles

So he's just glorifying buying homes from desperate people for cash with some pretty deal transaction system, and then outsourcing the rehab?

Tim Woloshyn
Tim Woloshyn

Last time I checked, sellers don't "purchase home" -- they sell. Buyers "purchase home".

Josh Poulain
Josh Poulain

Um... really? It seems pretty straight forward. They work with sellers directly... aka no real estate agents taking huge commissions for very little work

Shane Bornstein
Shane Bornstein

How can this post be titled "This. Could. Be. Huge" when we know next to nothing about it?

Paul Mohme
Paul Mohme

The status quo of paying 5% commission to sell residential RE in places like S.F. needs to be disrupted.

Tim Woloshyn
Tim Woloshyn

It probably won't work most of the time. I think people would ultimately care more about $$ -- if this allowed them to sell without paying the 5 or 6% -- they'd do it. But the business is way too complicated, and I think that most people will be too hesitant to turn something so important over to a low-cost service provider -- in case something gets messed up. But maybe Open Door already has that figured out -- we'll see. I do think the industry is ripe for change.

Sumi Allen
Sumi Allen

yay, so the only people who can be connected to funding by nepotism are the rich white kids. They're the only ones who can afford the robbery by the realtors and landlords. thanks racist boomer white trash caste system!

Noah Kirshbaum
Noah Kirshbaum

Won't work...people want relationships not quick sales. This is the dirty little secret out there...people actually want to work with people.

Tim Woloshyn
Tim Woloshyn

sure, but so far their message is confusing "We work with sellers directly to purchase home." What does that even mean?!