$15 Million Series A supports the startup’s growth with a $10M Net Revenue Run Rate
In 2021 real estate fintech startup Backflip launched an all-in-one platform for real estate entrepreneurs to support their acquisition and renovation of single-family homes. The platform provides them with technology, data, and financing strategies enabling them to scale their businesses.
With the real estate entrepreneurs embracing its platform, Backflip touts its role in “reinvigorating the housing supply and their local communities”. In 2023 the three-year-old startup achieved a 5x year-over-year net revenue run rate.
“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…In doing so, we’re empowering our members to rejuvenate communities one modernized home at a time.”
Members are now analyzing on the platform an average of $5 billion in properties each month. Using Backflips’ purpose-built technology and capital products, real estate entrepreneurs are able to efficiently manage their investment pipelines, secure funding, and grow their real estate investment business.
Through the combination of services delivered via its platform, Backflip has funded over 900 homes to date and members have realized an average gross profit of $82,000 per property. Also, they typically repay their loans in six months. When creating the platform Backflip designed it to have underwriting processes that achieve investment-grade credit ratings which has led to exceptional loan performance.
Backflip’s high performance since launch gained investor backing, led by FirstMark Capital and early investors in category-defining platforms Airbnb, Shopify, and Pinterest. They joined a group of prior venture capital firms and notable angels that included Greg Waldorf, Rob Barber, Gregg Freishtat, CEOs and former Board Members at Zillow, Attom Data, and GreenSky, respectively.
“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.”
