Perch is the latest homebuying startup to pull in a surprising amount of funds from investors, bringing in $220 million in debt and equity.
Bloomberg reports that Perch, along with similar startups like Opendoor and Offerpad, have been raising money to fund their business model of buying homes at a predicted price, making minor repairs, and reselling them. They fall into the category of “iBuyers” along with other more established companies like Zillow and Redfin.
Investors seem to be willing to look past the considerable short-turn risk of market downturns to fund these real estate disruptors. Perch just raised $20 million in equity and $200 million in debt.
“The housing market is in early innings of tech disruption,” said Andrew Eisenson, an analyst at Bloomberg Intelligence. “You’re seeing investors that look 10, 20, 30 years out and say, ‘This industry is going to look different down the road, and tech is going to have a part in that.’”