Sundae is a marketplace for homeowners to list and sell dated or damaged homes. The company connects homeowners looking to sell their houses as-is to the largest network of investors.
Since January 2019, Sundae has been operating in four areas— San Diego, Los Angeles, the Inland Empire, and Sacramento.
TechCrunch reported that the startup had hit an annualized revenue run rate of over $400 million in gross merchandise value (the total value of home sales transacted on its platform).
Series B of $36 million
QED Investors, Founders Fund, Susa Ventures, Navitas Capital, and Prudence Holdings all got together to fund the Series B round of Sundae. It amounted to $36 million.
The previous round A was also funded by QED Investors when the firm put a $16.55 million Series A in Sundae.
Homes that need love segment
Essentially Sundae turns distressed homes into ready-to-inhabit homes for a quicker turnaround. Homeowners must go through many hoops if they have sold their homes quickly. The San Bernardino Sun recently reported that the Inland Empire saw an unprecedented year as home prices have improved margins.
The home buying boom in the Inland Empire makes it easy for platforms like Sundae to expand operations in the Inland Empire. The region is already a major box industrial market in America.
Housing Booms Amid Economic Growth of the Inland Empire
Startempire Wire reported that “business growth in the Inland Empire has been recognizable over the last few years. The Inland Empire Business Activity Index released by UC Riverside School of Business Center for Economic Forecasting and Development has delivered some exciting statistics for business owners in the region”.
There was a cumulative economic growth of 11.1% from 2011 to 2016 in the Inland Empire region. We did mention earlier that infrastructure investment and demographics are two key factors pointing towards the true north of a region’s suitability for a startup ecosystem. And, in turn, helps job creation.
“According to the Press-Enterprise, the Inland Empire region added more jobs at the end of 2019 compared to Los Angeles, Orange, and San Bernardino counties”.
Nonetheless, a major part of this job creation involves warehouse jobs, as the region is a logistics and distribution hub. Some of the key investments recently were:
- Duke Realty Corporation (NYSE: DRE), a domestic industrial real estate company with a market cap of $20 Billion, has https://startempirewire.com/duke-realty-buys-property-in-the-inland-empire-as-demand-for-modern-distribution-space-soars/ bought a logistics property in Southern California’s Inland Empire West sub-market.
- Realm Group, Newport Beach-based real estate investment and development company will build Magnolia Flats, a project with 450 new rental units in Riverside near Tyler Galleria.
With this being said, Startempire Wire will reach out to Sundae’s founders and management to learn the company’s footprint in the Inland Empire and how it sees distressed home sales in the region.
We Covered this in our Weekly Wire Round up
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