BOULDER — Zavvie Power Buyer LLC, a software company providing customized marketplaces for real estate companies, has closed a $3.65 million funding round.
The round was led by existing investors, including Second Century Ventures, the startup incubator backed by the National Association of Realtors.
Tyler Thompson, managing partner at Second Century Ventures, is joining Zavvie’s board of directors.
The funding round “illuminates how consumers have dramatically changed the way they bought and sold homes in 2022, using solutions such as Power Buying (cash offers), Modern Bridge (buy before you sell), Listing Concierge (presale renovations), Instant Sales (iBuyers), and Homeownership Accelerator (rent-to-own),” according to a Zavvie press release.
The new funds include $1.5 million in cash and $2.15 million in convertible notes.
“At Zavvie, we believe 2023 will be a breakout year for Power Buying because cash offers will particularly help first-time buyers,” Lane Hornung, Zavvie CEO and co-founder, said in a prepared statement. “Also poised for explosive growth are two more categories: Listing Concierge or presale renovations, which help consumers sell their homes faster and at a higher sales price, and Homeownership Accelerators. Most renters still want to buy a home, and with a Homeownership Accelerator program, they can rent their starter home today and own it tomorrow.”
Hornung said a shift in buyer and seller behavior in 2022 benefited Zavvie’s business momentum and growth, with the company increasing its total number of brokerage-assisted transactions by more than 400% over 2021 transactions, with revenue increasing by more than three times.Zavvie recently teamed up with several local and regional brokerage firms, including Windermere Real Estate, Kentwood Real Estate — a Berkshire Hathaway Affiliate, Helen Adams Realty and Crye-Leike Real Estate Services.