FirstMark Capital led the round
House-flipper Perch has raised a $20 million Series C round led by FirstMark Capital, which brings the total equity raised to $51 million. The startup also landed $200 million in debt, according to TechCrunch.
How it works: Perch makes an offer to buy an owner’s house within 24 hours of an online submission. Although the seller gets less money by foregoing a traditional marketing process, Perch and its competitors offer convenience and certainty.
The pitch to VC’s: CEO Court Cunningham claims that Zillow, Redfin, Opendoor, and Offerpad solely help individuals sell their homes, not find replacements. Perch wants to focus on both of these elements.
Reality check: OpenDoor allows buyers to browse all homes on the market in Dallas and is expanding coverage throughout the United States. Perch’s sales pitch will not work when compared with established competitors who possess massive war chests.