Real estate start up
With the accelerated growth of real estate in today’s metropolitan markets, it’s no surprise that innovation and growth from this is highly valuable. With $27 million dollars in funding, Austin startup Opcity is proving that through and through.
The company just closed a Series A round of funding, and it is the largest round of funding raised by an Austin startup this year.
According to Opcity’s website, the startup performs lead generation for real estate brokers, to ensure that brokers receive “the right referral…in real time,” for both buyers and sellers. Traditionally, according to CEO Ben Rubenstein, the process that connects real estate market participants and brokers “has historically been complex and at times extremely frustrating.”
Opcity aims to both simplify and optimize that experience.
They certainly have a point; lead generation can eat up a lot of work bandwidth for brokers. It requires managing multiple marketing channels, both online and offline. So much so, that there are entire Quora threads and articles dedicated to these very topics. Some of them specifically lament the existing pay-for-leads system that exists in the online marketplace, citing how difficult it is to convert these leads into clients.
Opcity assumes this role for these agencies, and all without upfront costs to them; brokers pay up only when the transaction closes.
Not only has the startup proposed a better solution to lead generation, but they have developed it in a city with a thriving real estate ecosystem, and that’s more important than you might think.
“You build a successful venture WHERE the regional economy, market, and ecosystem of experience, talent, and resources support what you are trying to accomplish,” MediaTech Ventures founder Paul O’Brien said. To that end, “Austin (and Texas) are distinct from the coasts given the tremendous room for residential and commercial development, met with demand – as thousands are moving into Texas every day. [It] is the market ideal for innovation in real estate and Opcity helps establish that fact.”
On the up
Texas isn’t the only state catching on; since their launch in 2016, Opcity closed 350 brokerages and over 4,000 agents to work with their platform. In addition to the industry’s top independent brokerage firms, Opcity also works with Century 21, Keller Williams and other classic brands.
That attention caught the eyes of venture capital firm Icon Ventures, who led this round of funding with support from Georgian partners and LiveOak Venture Partners.The funding will allow Opcity to scale into other markets.Click To Tweet
As this model catches on, it could significantly shape the marketing and communication interactions between brokers, buyers and sellers. Anyone in the real estate industry should be paying very close attention to this journey.