Ribbon, which aims to bring speed, transparency and certainty to the home buying process, has raised $330 million in equity and debt financing to facilitate the company’s expansion into new markets, as well as to accelerate product development efforts.
The startup reports that it closed a $30 million Series B round of funding led by Greylock and secured a debt facility with Goldman Sachs that, in addition to a previous facility, provides current financing capacity to $300 million upon closing, and may be increased by an additional $220 million, in each case, upon the satisfaction of certain conditions.
All previous investors, including Bain Capital Ventures, NFX and NYCA also participated in the Series B round, as did new investor Thomvest Ventures.
Ribbon says it dramatically simplifies the home buying process by enabling home buyers with an all-cash, guaranteed-to-close “Ribbon Offer” to present to home sellers.
Buyers are pre-approved for a purchase and home valuations are completed within 24 hours, making the offer experience fast, transparent and predictable.
If a home buyer can’t close with a mortgage on time, Ribbon will buy and reserve the home on behalf of the home buyer and lease it to them for up to six months.
Sellers and agents also benefit from the process, which ensures a guaranteed, stress-free experience.
To-date, home buyers working with Ribbon have increased their chance of having their offer accepted by an estimated ten times. Buyers saved an average of $10,000 in cash discounts and received a 100% on-time closing.
Ribbon currently operates in eight markets across four states.