Nested, the online real estate agent who makes home sellers ‘chain-free’, raises an additional £ 120million – TechCrunch
Nested, the London-based real estate agency that provides a cash advance to help you buy a new home before you’ve sold the old one, has raised an additional £ 120million. The new round is a mix of equity and debt: £ 20million and £ 100million, respectively. Northzone and Balderton Capital lead the round, while the debt financing comes from an anonymous institutional investor.
It should be noted that Balderton has just invested in Nested several rounds in the life of the business, given that the London-based venture capital firm usually invests earlier in Series A. Balderton is also a funder of GoCardless, the payments company previously co-founded by Nested founder Matt Robinson. That said, Balderton’s general partner, Tim Bunting, made an early investment in Nested on a personal basis.
Launched in late 2016, Nested competes with high-end real estate agents by providing all the services needed to sell your home, but with one key difference. In addition to handling appraisal, marketing and sales, the startup will loan you up to 95% of the market value of your property as a cash advance, so you can buy a new home before the sale. of your old one. Before Brexit and the uncertainty it caused over house prices in London, that figure was up to 97% of the property’s market value, and I understand Nested is hoping to get back to that percentage a once things have calmed down.
More generally, the idea behind Nested is to take a lot of the stress and uncertainty out of selling and buying a home, including what your final budget will be, and also to make sure that you are never caught in the dreaded chain of ownership over your desired home, or are held in limbo indefinitely while awaiting the sale of your property. By becoming a cash buyer, it also puts you in the strongest possible position to negotiate your subsequent purchase. Robinson says this typically results in savings of 2 to 4 percent.
In return, Nested charges a 2-4% fee (plus VAT) depending on when you wish to receive the advance, and incurs a loss if it fails to sell the property for an amount greater than its initial advance. The idea is to get the startup to always try to get you the actual market price or higher.
When asked if it has worked well so far, Robinson told me that the accuracy of the historical valuation was on average 1.5% of what the company had predicted. Best of all, Nested runs with 100 percent accuracy for 2018 and is confident enough to make this data public.
“Traditional agents don’t even follow it, and online gamers do their best to hide the fact that they only sell about 4 / 10th of the properties they buy, that is, most of clients pay them £ 1,000 up front not to sell their homes and get left behind! ”says the founder of Nested.
To date, Nested has helped over 400 homeowners and, in addition to increasing volume, including helping homeowners outside of London, the company has announced plans to further expand its product offering. Most of these new products will continue to target salespeople to “dramatically improve the selling experience”. However, I understand that since sellers are buyers too, future services may also include the use of Nested’s data, technology and expertise to facilitate the buying process.
Robinson added in a statement, “We are delighted to receive support from some of Europe’s top VCs who share our vision to solve the age-old problem of buying and selling homes. We are building an incredible team to deliver unassailable service with the most advanced technology in the real estate industry. This investment will allow us to continue to solve the problems that prevent people from moving easily ”.