Backflip has raised $15 million in a Series A funding round to expand its platform for real estate investors.
Backflip said in a press release on Monday (April 29) that its real estate and fintech platform aims to provide capital and tools to entrepreneurs who collectively flip 400,000 homes a year in the U.S.
“We're putting information, support and capital products designed for entrepreneurs into the hands of more individuals in an industry that has historically offered too many barriers to successfully starting or scaling a business,” Backflip CEO Josh Ernst said in the release.
According to the release, Backflip's technology and capital solutions help members manage their investment pipeline, secure capital and grow their real estate businesses. The company provides real-time data through its mobile and desktop apps to help members source, track, compare and evaluate potential investments and secure project financing.
According to a press release, the funding comes as the company's net revenue run rate exceeds $10 million and it is approaching profitability. Backflip has financed over 900 homes, with members earning an average gross profit of $82,000 per home and typically paying off their loans in six months.
Backflip's latest funding round was led by FirstMark Capital, according to a release.
The emergence of digital tools and platforms has transformed the home-buying process, PYMNTS reported on April 5. At the heart of this digital transformation are all-in-one platforms that streamline the home-buying experience. These apps use advanced technologies such as artificial intelligence, augmented reality, and data analytics to provide users with personalized recommendations, virtual tours, and financial planning assistance.
In another development in this space, Built announced in March that it had expanded its construction and real estate finance platform to meet the needs of property owners and developers. The platform now helps these professionals manage budgets, streamline billing and compliance, move funds and make decisions.
The platform includes integrated budget management, compliance and payment workflows, and withdrawal requests, as well as vendor management and built-in payment capabilities to help you complete development deals on time and on budget.