Venture Capital: Landis, Which Facilitates Equality In Homeownership, Scores $165M Raise
The Series A round was led by Sequoia Capital.
Landis, which helps more American renters acquire homes and democratizes homeownership, announced Tuesday its $165 million Series A round led by Sequoia Capital. Also participating were Signia Venture Partners, Will Smith’s Dreamers VC, and Jay-Z’s Roc Nation.
Other investors included founders of fintechs Plaid, Cash App, and Ethos. The founders of Instacart, Front, Flatiron Health, and Tango also participated in the funding round. (BusinessWire)
The company will use the funds to expand to more markets, strengthen its technology and grow its team.
Landis: How it works
The company’s business model works by buying a home for clients who are unable to afford one immediately. The usual hurdles are poor credit, inadequate savings for a down payment, or outstanding debt. Instead, Landis rents the home to them until they improve their finances enough to qualify for a mortgage.
How does the startup ensure a client will indeed make the cut and graduate to homeownership from renting? The company says it uses dynamic underwriting technology to determine whether the client might qualify for a mortgage in the next 12-24 months, and their optimum budget for purchasing a home. Once a client selects a home within the assigned budget, Landis purchases it, rents it to them and coaches them on financial discipline
After the client improves their finances and can afford a mortgage, they buy the home from Landis and start making payments on their mortgage instead of rent.
Landis’ mission to help more Americans become homeowners also encompasses those minorities that have historically been unable to secure roofs over their heads.
“What makes Landis unique is our ability to coach anyone to homeownership,” said Landis co-founder Cyril Berdugo. “This new funding will allow us to help more Americans on their path to homeownership by expanding to new states, hiring talent nationwide, and providing a better experience to our clients and partner agents and lenders.”
The company also helps real estate agents nationwide because the agents who refer clients to Landis represent Landis when the company buys a home for the client.
“No one should be locked out of homeownership forever. Whatever their situation, we give our clients easy, achievable steps to become eligible for a mortgage. Getting ready for a mortgage is often a stressful and difficult process. Landis makes it easy, fun, and approachable,” said co-founder Tom Petit.
“Landis’ technology is particularly relevant to those with low-to-moderate income who have been neglected by traditional financial solutions,” said Roelof Botha, partner at Sequoia.
Related Story: Stilt, The Loan Provider To Immigrants, Raises $100M Debt
Image credit: Company
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