On the heels of its launch in the GTA, Properly secures major financing deal to overhaul the Canadian home buying process
TORONTO, Sept. 30, 2020 /CNW/ – Following the launch of its first-of-its-kind home buying and selling service in Toronto last month, Properly, a Canadian real estate technology company, experienced a flood in demand, piquing the interest of homebuyers and attracting the interest of leading investors. Today the Toronto-based company announces it has secured a $100 million credit facility from two leading U.S. finance firms – Silicon Valley Bank and i80 Group. This financing helps Properly enable its end-to-end real estate service, which helps Canadians purchase and move into their new home before selling their current one.
After witnessing the explosive growth of technology-driven innovation in the U.S. real estate market, the two leading firms behind the financing — Silicon Valley Bank, a bank focused on serving technology and life science companies and their investors, and i80 Group, a specialty finance firm that supports breakthrough fintech and proptech — are working with Properly to bring the same level of disruption to a Canadian market that has historically lacked innovation.
“We’ve seen technology-based real estate companies gain enormous market share in the U.S. by making the experience of buying and selling homes less stressful and more convenient,” said Nick Christian, Head of Specialty Finance at Silicon Valley Bank. “We see the same extraordinary opportunity in Canada, and we’re proud to support Properly as it works to revolutionize the real estate transaction.”
In the U.S., home buyers and sellers are flocking to companies that use technology to improve the purchase and sale experience. In 2019, six to seven percent of home sales in cities such as Phoenix and Raleigh were completed using a service similar to Properly’s, according to Redfin. The market share of these services have doubled nationally since 2018.
“It’s no secret that Canada’s real estate industry is ripe for innovation,” said Anshul Ruparell, co-founder and CEO, Properly. “This partnership will help us realize our vision of making home buying and selling data-driven, predictable, and stress-free. Now Properly can help even more Canadians buy their dream home as soon as it hits the market, even if they haven’t sold their current one.”
Traditionally, homeowners looking to purchase their next home faced a stressful dilemma: sell their old property first and risk moving twice, or buy first and risk holding two mortgages if the old property doesn’t sell in time. With Properly, home buyers will never miss out on a home they love because they haven’t sold their current one.
Properly lets homeowners secure the financing needed to purchase their next home so they can act quickly when they find a home they love. Once they’ve moved into their new home, Properly lists their old home on the market, so they can avoid living through showings and open houses, which is especially important during the pandemic. Customers can choose to work with one of Properly’s in-house real estate agents to help them navigate the purchase and sale process. Properly’s service costs the same as working with a traditional real estate agent; however, it comes with added financial benefits such as avoiding paying for two mortgages or incurring bridge loan costs. Within the first month of offering this new service, Properly was flooded with demand from thousands of Canadian homeowners.
“It was clear while getting to know the Properly team, the people and process would result in an unprecedented offering in the Canadian residential real estate market,” said Marc Helwani, Founder of i80 Group. “While we work with many innovative companies in the U.S., this is our first partnership with a Canadian firm. Properly’s results speak for themselves, and we’re excited to be a part of their success.”
Currently, Properly operates in the GTA and Ottawa, with plans to expand across Canada.
Properly is a Canadian real estate technology company transforming the home buying and selling experience with AI-powered home valuations and a modern, streamlined service. Properly launched in 2018 with the goal of empowering Canadians in their journey of homeownership. The company is headquartered in Toronto. To learn more about Properly, visit www.properly.ca
About Silicon Valley Bank
For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. SVB works with leading Canadian companies including Shopify, Wave, Borrowell, and Properly. Learn more at www.svb.com/canada.
About i80 Group
i80 Group is a specialty finance firm providing capital and support to breakthrough fintech and proptech companies and other innovative platforms. We provide creative and flexible asset-based facilities used to fund origination of loans and other collateral. Rather than offering a one-size-fits-all structure, we design bespoke solutions specific to the unique needs of our partners. The company is headquartered in New York with offices in San Francisco.
Learn more at www.i80group.com.