Our portfolio company Beycome announced today that it successfully raised a bridge financing round from the LAB Ventures network last month, setting it up for strong growth in Q1 and an anticipated equity round in the spring/summer.
Beycome, which joined the LAB Ventures studio in the spring of 2020, is a digital real estate agent, empowering home buyers and sellers to save thousands of dollars on commissions. The platform provides consumers with a powerful suite of digital tools— including access to the Multiple Listing Services— and an experienced team of real estate advisors to empower them to buy or sell a home quickly and efficiently. Their Florida and Illinois affiliates have already performed over 4,500 closings, making them the largest independent brokers in their respective states, all while saving customers more than $55M+ in commissions.
The company originally launched as a flat-fee listing service for home sellers, but earlier this year added their “Buy with Beycome'' program to assist consumers with the home buying process and provide them a cash rebate at closing. Then in September they launched Beycome Title in partnership with Expetitle, an online title insurance and closing service that supports a fully remote transaction. Both new products provide incremental revenue, and much higher margins, from the existing customer base (most home sellers eventually become home buyers) and have been growing exponentially since their introduction.
The funding will be used to grow the core team and prepare the company for an institutional venture round later this year. Beycome CEO Nico Jodin explained, “we used the early months of COVID to completely rethink our cost structure, and leveraging the LAB’s experience we have been able to regain our pre-pandemic volumes with much more compelling unit-economics than before. We ended the year with 13% more transactions despite the pandemic, and we did this while reducing our cost base by almost 80%.” The company recently posted a job listing for a head of telemarketing and is also seeking to fill finance and operations roles.
“Nico and the Beycome team have created an amazing platform for growth. They are beginning to leverage their tremendous transaction volumes to cross sell more products and increase customer LTV. We have been working closely with them throughout the pandemic and are convinced that 2021 will be a breakout year.” — Matti Marshak
LAB Ventures co-invested in the round alongside a number of miami-based angel investors. LAB Ventures Startup Studio CEO Matti Marshak said the LAB Ventures team is excited about the sector, which has seen much smaller startups like Homelister raise large venture capital rounds last year*. “Beycome represented buyers or sellers on over 1000 transactions in 2020,” he added.
Last 12 Months Sales Volume (via Zillow)
*According to data on Zillow.com from 2020, Beycome handled 4.6 times as many sales as Homelister, which raised a $4.5M venture round last month