Dallas Digital Real Estate Startup Nada Closes $2.5M Seed Round » Dallas Innovates
Since launching in 2018, the Nada team has worked hard.
First, Dallas-based Nada raised around $ 800,000 from private and institutional investors to quickly gain traction for its all-in-one online solution, which acts as an alternative to the traditional commission structure for home sales.
With new services in the pipeline and revenue coming in, Nada was ready to raise more funds. This led to a campaign in June 2020 with Republic, an investment platform that enables early stage startups to raise up to $ 1.07 million from everyone – friends, family, fans, and the public – through crowdfunding.
Republic brought its city program to Dallas last year as part of its mission to launch in high-growth, emerging cities that are working to create a level playing field for entrepreneurs. Republic Cities Dallas aims to connect with the local startup community while highlighting the companies that are building on Republic.
In just under a week, Nada achieved 100 percent of its donation goal. The following year, Nada raised $ 1.8 million from 4,000 public equity investors to Republic.
This is the fourth highest public equity raise for a real estate company since tracking regulatory crowdfunding deals in 2017, according to Kingscrowd.
To complement the growth that includes new partnerships and product releases, Co-Founder and CEO John Green knew he needed to bring in more cash. This resulted in Nada recently completing a $ 2.5 million seed round from Global Millennial Capital, bringing their total capital to more than $ 3 million, Green told Dallas Innovates.
Don’t pay anything
The premise behind the Dallas-based real estate startup reflects its name: sell your home online, pay nada.
Nada has integrated all services – real estate, mortgages, insurance, fiduciary services – into a single digital solution. So far they have launched Nada Services, a title and settlement business; Nada Loans, a mortgage broker; and Nada Insured, an insurance agency with co-brokerage agreements. That makes four divisions under the parent company Nada Holdings.
According to Green, this means that a real estate transaction is completely transformed into a full homeowner-service relationship.
When a home is listed on Nada, the owner receives a full range of real estate services for a flat fee of $ 4,000 that is paid at the end. This fee will then be fully refunded when you buy your next home with Nada. This is where the “nada” payment comes into play.
Customers who use Nada to buy their home are rewarded with up to $ 2,000 in cashback in closing expense credits, which help lower the money needed to become a homeowner.
Nada is able to do this based on the team’s support structure and the use of automation to streamline the home buying process. Costs are reduced and classic commission fees, which can sometimes be up to 6 percent, are avoided. All flat fees and services are listed in advance and Nada is only paid if the home sale is successfully completed.
“The Nada platform combines human and machine intelligence to enable a mobile consumer experience from discovery to financing to closing and owning a home,” Green previously told Dallas Innovates. “We pride ourselves on serving our community today and helping people unleash more of their equity through a low-stress process.”
A new addition to the Nada range of offers has been introduced homeshares, a way of exchanging fractions of your home equity for cash.
Like pensions and savings, Nada believes home equity is earned. Home ownership is used to free up earned equity – by exchanging it for cash without debt – to make home ownership more flexible. It doesn’t require monthly payments, and the unlocked equity funds can be used to pay off debts, renovate, invest, and more.
Next up for Nada is a new product for anyone interested in buying, selling, trading, financing or investing in real estate. The program will be through a joint venture between Nada and Republic Real Estate, Republic’s real estate investment vertical.
There’s more to it, says Green.
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