SAN FRANCISCO (PRWEB)
June 24, 2020
OMERS Ventures has led the USD$10.5 million Series A extension funding round for residential real estate company, Landed, bringing the company to a total of just over USD$22 million raised in venture capital. Existing investor, Initialized Capital, also participated. The venture capital dollars are in addition to the over USD$50 million in private equity real estate capital Landed has raised for its down payment program. OMERS Ventures Managing Partner Michael Yang will join the Landed board.
Landed offers a shared equity down payment program for essential employees – starting with educators – who wish to buy homes in the communities where they work, across the United States. Landed’s down payment program invests alongside employees in education to help them reach a 20% down payment. Landed’s funds, up to $120,000 per household, come in the form of an equity investment, meaning that homebuyers share in a portion of the gain – or loss, if any – of the value of the home once it’s sold or refinanced.
The U.S. housing market increased by USD$1.9 trillion in 2019 to a total value of USD$33.3 trillion, with millennials at the cusp of being the largest demographic of homebuyers. Yet this group faces financial stress linked to affordability and accessibility, both of which have been exacerbated by the recent pandemic-related uncertainty. Those stresses are especially acute for educators, whose income has not kept pace with median housing costs. In response, new homeownership models have started to evolve, most notably from an emerging class of alternative financing start-ups like Landed.
“Landed has a unique mission to help essential professionals find a path to home ownership, including through its dedicated team of agents and experts,” said Michelle Killoran, OMERS Principal and proptech specialist. “We look forward to working with Jonathan Asmis and Alex Lofton, and the entire Landed team, to help the company continue to grow, while amplifying its positive impact.”
Landed co-founder, Alex Lofton, added, “Educators are part of the heartbeat of our communities – they are stable, responsible professionals that we all rely on. But unless they get financial support from mom and dad, it’s become near impossible to save for a 20% down payment while also paying rent and other expenses. Landed is changing all this by supporting those who uphold our communities: we have started with our educators and plan to extend our work to other essential professionals like healthcare workers. This investment will help us do just that.”
He continued, “We felt alignment with OMERS Ventures from the very start. There’s a wonderful synergy…