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San Francisco startup Opendoor is pursing a killer idea: using the Internet to sell your home in a jiffy. No wonder investors can’t help but keep pouring their money into the startup.
Today Opendoor is announcing a $20 million round of funding, just seven months after announcing a $10 million round.
The startup is off to a strong start in its first market, Phoenix.
“It’s working perfectly,” Keith Rabois, an Opendoor cofounder and a partner at Khosla Ventures, told VentureBeat in an interview. “I would expect that we’ll represent 1 to 5 percent of the market in Phoenix this year.”
In addition to growing in Phoenix, Opendoor intends to expand to more cities. Dallas and Portland, Ore., are up next, according to a statement. And Opendoor could well branch out in terms of the things that it can do — like simplifying the process of buying a home, perhaps.
But even if Opendoor’s team never gets around to doing that, Rabois believes the startup is already working with something huge: the sales side of the residential real estate market.
“We should be able to build a $50 billion business doing just that,” Rabois said. “If we can’t do that, we shouldn’t be doing anything else.”
Part of the appeal of Opendoor is its ability to cut down substantially the time it takes to sell a home. Opendoor can do that because it uses lots of data to figure out exactly how much a home is worth.
So part of the new money will go toward growing the data science team that focuses on this complex process, and incorporating more types of data to make better calculations, Rabois said.
“We can easily double or triple our data science team,” he said.
GGV Capital led the new round in Opendoor. Khosla Ventures also participated in the round. The startup has previously attracted a long list of prominent investors, including Michael Arrington, Adam D’Angelo, Elad Gil, Max Levchin, Om Malik, Dave Morin, Adam Nash, Naval Ravikant, and David Sacks.
To date Opendoor has raised $30 million.
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