“The revolutionary way to buy and sell your home”

Founded: 2014 in California, USA

Category: Real Estate

Primary office: San Francisco, California (USA)

Core technical team: San Francisco, California (USA)

Status: Private

Employees: 1800

Amount raised:

$1.5 billion (8 rounds – March 2019).

$3 billion in debt financing

OVERVIEW

  • Provides an online marketplace for simplified, hassle-free home buying and home selling.
  • Enable homeowners to request and receive immediate offers on their home or property, eliminating the risks and challenges associated with the traditional home sale process
  • Provides a seamless on-demand process to access a wide range of properties, enable buyers then to schedule a self-tour and place an immediate offer (with options for highly competitive cash offers) on a desired property

 

PERFORMANCE METRICS

  • Valuation – $3.8 billion (2019)
  • Revenue – $100 million (2019)

 

ACHIEVEMENTS

  • Over 800,000 self-tours with over 500,000 completed transactions (2018)
  • Venture capital-backed
  • Buys and sells over 3,500 homes monthly
  • Grew footprint from 2 US cities to 21 cities in 3 years (2016-2019)

Sells

  • Marketplace to buy/sell homes with less friction and a greater payout than traditional home sales
  • Realtors are a component of the marketplace with payments for buying/selling to Opendoor and for referrals

Channels

  • Online and Mobile user-friendly Interface
  • Partnership with over 2,000 home builders and commercial home sellers
  • Partnership with local vendors and artisans in property management providing easy access to such services
  • Partnership with realtors – $130M+ in commissions and referrals; 15,000+ agents transacted with Opendoor in 2019; Opendoor purchased a house every 28-minutes

Competencies

  • Founder-led management team
  • Data modelling, Artificial Intelligence, Machine learning
  • Data modelling to identify opportunities and gaps in the home market and to identify optimal pricing

Resources

Assets

  • Hassle-free and transparent costing and pricing for all players
  • Large real estate and property management ecosystem – partners with various vendors and artisans (home cleaners, repair workers, electrical services, landscaping, etc.)
  • Presence in 21 cities in USA and fast growing.
  • $3 billion in debt financing to buy properties

Processes

  • Online & Mobile enabled platforms
  • Provides immediate competitive cash offers on properties for both buyers and sellers
  • 90-day company buy-back option for dissatisfied buyers on Opendoor-owned properties
  • Free in-person home assessment

Priorities

  • Increase IT capability – improve AI algorithm or price modelling, improve user interface
  • Diversify product offerings – include mortgage tools, post-purchase contract development tools,
  • Drive market expansion within and outside USA.

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Develop and sell products that address a problem, job to be done or a need that is shared by a large and growing number of individuals and organizations in various regions to increase sales.
  2. Increase demand by using scientific and technological advances to develop innovative products and services
  3. Increase value by arranging and directing a community comprised of groups that are external and internal to the company and connect everything needed to scale.
  4. Increase sales by offering a variety of products and services to each market
  5. Increase demand of products and services by combining two or more resources in a way that the value created from them exceeds the sum of the value created from each resource separately
  6. Arrange and apply differently the company’s existing resources to increase sales

References

Opendoor website. 2019. https://www.opendoor.com/w/about

Crunchbase. 2019. Opendoor. https://www.crunchbase.com/organization/opendoor-2/funding_financials

Lunden, I. 2019. Opendoor raises $300m on a $3.8billion valuation for its home marketplace. [online]. TechCrunch. https://techcrunch.com/2019/03/20/opendoor-raises-300m-on-a-3-8b-valuation-for-its-home-marketplace/

Owler. 2019. Opendoor. https://www.owler.com/company/opendoor


Contributors

  • Yinka Olanrewaju-Olawepo