Austin-based Homeward Raises $25 Million in Debt and Equity Funding

A real estate tech startup, Homeward announced on Monday that it has raised $25 million in funding.

That includes $4 million in equity funding and $21 million of debt funding.

Austin-based LiveOak Venture Partners led the equity funding and Genesis Capital and Keystone Bank provided the debt funding.

“Founding team members

of Opcity, ApartmentList, and a few other real estate tech startups also participated in the round,” according to a news release.

Homeward has created a product called The Homeward Way that allows its customers to make all-cash offers to secure their next home before selling their existing home. The company plans to use the funds raised to further develop that product along with other expansion plans.

“The current process of home buying is backwards,” Tim Heyl, founder and CEO at Homeward, said in a news release. “Buyers have to sell their existing home and then rush to find a new one. We remove this uncertainty by letting buyers use our cash to secure their next home first. Then they can take their time and sell their existing home for its full market value.”

Heyl, a real estate professional, founded Homeward in 2018. The company operates in Texas, Georgia and Colorado.

“The Homeward Way gives homebuyers credit for their home equity up front, and lets them make an all-cash offer to secure their next home using the company’s funds. Homeward customers also receive a floor price guarantee on their existing home in case they’re unable to sell it for its full market value,” according to a news release.

Homeward charges a fixed 1.90 percent of the purchase price.

“We partner with exceptional entrepreneurs who are looking to transform large established industries. We recognized early on after meeting with Tim, given his incredible domain expertise and accomplishments and our experience as the first institutional investor in Opcity and Ojo Labs, that Homeward has real potential to disrupt the real estate market by empowering the consumer,” Krishna Srinivasan, Founding Partner at LiveOak Venture Partners, said in a news release.