NYC-based Knock Raises $400 Million

NYC-based startup Knock has raised $400 million in Series B funding.

A Revolutionary Home-Buying Experience

Knock is a home trade-in platform which helps users find a home, then purchases that home for them in cash so the user can move in while Knock sells their old home. For their effort, Knock receives a 3% commission from both the buyer and seller. By using data science and information technology, the company is able to price homes accurately and sell them quickly in competitive markets.

Courting Old and New Investors

Founded in 2015, Knock has already raised more than $434 million after four rounds of funding. The most recent – and by far the largest – was led by The Foundry Group and also saw participation from existing investors RRE Ventures, Corazon Capital, WTI, and FJ Labs, as well as participation from new investor, Company Ventures. Previously, Knock had raised $32.5 million in Series A funding in a round led by RRE Ventures.

Funding for Expansion

The new round of funding will reportedly be used to more than double the company’s current workforce, as well as being used to expand nationwide. Currently, Knock operates in five markets: Atlanta, Charlotte, Raleigh-Durham, Dallas, and Fort Worth. The new round of funding is intended to increase this reach dramatically.

A Revolutionary Home-buying Experience

The company was founded when former Trulia employees Sean Black and Jamie Glenn decided to build an end-to-end marketplace where people could easily trade in homes. According to co-founder and CEO Sean Black, “We are trying to make it as easy to trade in your house as it is to trade in your car.” For users, the idea of streamlining the complicated process of home buying is a welcome one. To date, Knock has helped more than 4,000 people trade in their home.

Investors Are Optimistic

Investors seem taken with the idea as well. In a written statement, Foundry Group partner Seth Levine stated, “At Foundry we love working with passionate founders who are on a mission to fundamentally change an industry. The Knock team is exactly that — combining years of experience in real estate technology with a fundamental drive to change the way consumers buy and sell homes.”

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