We have mentioned here on the site the real estate startup Opendoor. Another promising startup in this sphere is Knock, and it’s been announced today they’ve just raised a $400 million Series B round (led by Foundry Group).
They share some parallels with Opendoor but also vary in that they concentrate on home trade-ins. They tell you what the value of your current home is, help you find a new home and then arrange “a smooth swap.”
One way they’re close to Opendoor is by fronting the cash for new home buyouts. In Opendoor’s case they are buying your home with the plan to sell it in the future. So Knock buys your home knowing your old home will be sold.
Compared to the way home sales are handled today it is certainly a more capital-intensive model. But many investors are plainly betting that changing the status quo is exactly what is needed.