Real Estate Fintech Backflip Announces $15 Million Series A Fundraise, Crosses $10M Net Revenue Run Rate
April 29, 2024 11:00 AM Eastern Daylight Time
DALLAS–(BUSINESS WIRE)–Backflip, the all-in-one real estate and financial technology platform for real estate entrepreneurs, announced today its $15 million Series A led by FirstMark Capital, early investors in category-defining platforms Airbnb, Shopify, and Pinterest. Previous investors Vertical Venture Partners, LiveOak Venture Partners, Revel Partners, ECMC, the real estate company Crow Holdings, and notable angels Greg Waldorf, Rob Barber, Gregg Freishtat, CEOs and former Board Members at Zillow, Attom Data, and GreenSky, respectively, also participated in the round.
The funding round comes after the company crossed $10 million in net revenue run rate – reaching near profitability. Backflip grew its revenue run rate 5x year-over-year in 2023 despite housing market headwinds, with members analyzing an average of $5 billion in properties each month on the platform.
Backflip is driving the future of real estate entrepreneurship through an end-to-end platform serving a like-minded community. The company’s purpose-built technology and capital solutions enable members to efficiently manage their investment pipelines, secure funding, and grow their real estate investment business.
“Backflip is not just about flipping houses; it’s about flipping the script on the why, how and what it means to be a real estate entrepreneur,” said Backflip CEO Josh Ernst. “Over 400,000 homes are flipped every year in the U.S. and growing. Our mission is to help everyone access the funding and tools they need to participate. We put information, support, and capital products designed for entrepreneurs in the hands of more individuals in an industry that has historically had too many barriers to successfully starting and scaling. In doing so, we’re empowering our members to rejuvenate communities one modernized home at a time.”
Backflip enables individual entrepreneurs to revitalize the housing market through the acquisition and renovation of single-family homes, having funded over 900 homes to date. Members have realized an average gross profit of $82,000 per property on the platform, and typically repay their loans in six months. Backflip’s approach and underwriting processes are designed to achieve investment-grade credit ratings and have led to a track record of exceptional loan performance.
Backflip’s platform offers a seamless experience through its mobile and desktop apps, granting members access to relevant real-time data to make informed decisions while on the move or from their desk. The Backflip app – which has been referred to as an “analyst in your pocket” – helps members source, track, comp, and evaluate potential investments in addition to securing project financing through Backflip.
“We are thrilled to lead Backflip’s Series A to continue the work of building the financial operating system for this integral but overlooked part of the real estate value chain,” said Adam Nelson, Managing Director at FirstMark. “The Backflip team has combined deep product empathy, technology and capital formation to build a 10x better product for their members.”
About Backflip
Backflip is a real estate financial technology company that supports entrepreneurs to acquire and renovate single family homes, thereby reinvigorating the housing supply and their local communities. The company offers purpose-built technology and capital products to source, analyze and finance residential real estate investments. Backflip is an all-in-one platform providing entrepreneurs with the technology, data, and financing strategies that allows them to scale their businesses. Visit www.backflip.com or download the app at the iOS App Store or Google Play Store to learn more. Backflip originates loans through its subsidiary, Double Backflip, LLC. NMLS ID # 2482717 – nmlsconsumeraccess.org. Equal Housing Lender.