Roofstock, an online marketplace for single-family rental home investing, announced Wednesday that the company raised $35 million in a Series C round of funding.
According to the company, Canvas Ventures led the funding, with “substantial participation” from existing investors Lightspeed Venture Partners, Bain Capital Ventures, Khosla Ventures, Nyca Partners, QED Investors, and FJ Labs.
In a release, Canvas Ventures General Partner Rebecca Lynn drew comparisons between Roofstock and Houzz and Lending Club.
“We were drawn to Roofstock because we saw parallels with Lending Club and Houzz. Both are multi-billion dollar companies reinventing their industries with innovative marketplace models,” Lynn said. “We see significant opportunity in the single-family rental-home investment sector, and have a great deal of confidence in the experienced Roofstock team.”
Lynn served as an early investor in Lending Club and was also a board member at the company. Another of Canvas Ventures’ general partners, Paul Hsiao, was an early investor and board member at Houzz.
Roofstock’s marketplace facilitates the buying and selling of single-family rental properties for investors. According to the company, its platform has advantages for both buyers and sellers.
For buyers, the company said that almost all of the properties listed on its platform already have tenants, which means that buyers receive rental income from “day one.”
The company also offers sellers lower commissions and the ability to continue to earn rental income up until the sale of the property.
Roofstock said that it plans to use the funds raised in this round to “meet increased customer demand, expand into new markets, and accelerate development of features that will continue to make the process of buying, owning and selling single-family rentals throughout the U.S. easier and faster.”
In a release, Gary Beasley, the co-founder and chief executive officer of Roofstock, said that the company is excited to move to this next phase of its growth.
“We are thrilled to be working with Rebecca and the team from Canvas, and are grateful to have such tremendous support from our existing investors who share our passion for building a marketplace that aims to fundamentally change the way real estate is bought and sold,” Beasley said.