Month: July 2022

Houwzer’s Next Move

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As a first grader in Cape May Courthouse, New Jersey, Mike Maher launched his earliest small business: selling Blow Pops and construction paper.

“Back in the day, colored paper was in high demand and kids always like candy, so I thought it was a great way to subsidize my own love of art and candy,” Maher says, laughing at the memory.

Now, as the CEO of Philly-based Houwzer—the five-year-old real estate brokerage firm that’s disrupted the industry both by employing salaried (versus commissioned) brokers, and committing so deeply to doing good that they’re a certified B Corp—Maher is continuing to recognize needs where others miss them, with a deep sense of empathy, hard work and service.

A sound direction

Long moved by Toms Shoes and Warby Parker, Maher knew there was no practical way to introduce a one-for-one model for homes. But reading Richard Rothstein’s The Color of Law and learning more about the demographic that the United Way and others have dubbed ALICE—asset limited, income constrained employed—prompted his latest venture.

Just this month, Houwzer announced a new, nonprofit RiseUp Fund: Starting in 2021, for every home sold, Houwzer will commit $100 to help provide down payment and closing cost assistance to the underserved.

“The mission will be to accelerate the generational, upward mobility of the underserved through homeownership,” Maher says. “We looked at the resources we had: agents in the field who can probably find off-market deals to acquire property; mortgage advisors who can help clients get their credit in good standing; and so on” and figured out how to maximize both for the greater good.

Over the next 12 months, Houwzer expects to do close to 1,500 transactions in the markets it serves—meaning the fund will have, at a minimum, $150,000. But they’ll also invite sellers, who on average save $15,000 by working with Houwzer, to match that $100; that could bring the projected pot to $300,000. They’ll invite employees to donate around the holidays, potentially raising that pot higher still. And while $300,000 can only go so far, imagine what they can do as the company continues to grow.

Read the full article here.

Philadelphia Adtech Startup Sidecar, Backed by $33.5M in Funding, Acquired by New York Competitor

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Philadelphia advertising technology startup Sidecar has been acquired by New York-based competitor Quartile.

The deal closed last week, and the terms were not disclosed. Sidecar will take Quartile’s name, and the company will retain its office at One South Broad in Philadelphia. The acquisition will fold Sidecar’s 180 employees into Quartile, bringing the total headcount to 300.

Quartile CEO Daniel Knijnik will remain chief executive, and Sidecar CEO Andre Golsorkhi will serve as president of the company.

Sidecar is an e-commerce tech firm that uses artificial intelligence to help retailers determine where and how to market their products. It was founded in 2014 with a focus on the e-commerce space for small and large online retailers.

Sidecar raised a total $33.5 million in venture capital before the acquisition. It last raised a $7.5 million round in 2019. Investors included Ben Franklin Technology Partners of Southeastern Pennsylvania, Harbert Growth Partners, Osage Venture Partners, Ascent Venture Partners and Robin Hood Ventures.

Read the full article here.

Real Estate Tech Company Houwzer Raised a $118M Series B as it Introduces New Products

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Philadelphia-based real estate company Houwzer has raised a $118 million Series B, the company announced Tuesday.

The round includes $18 million in equity and a $100 million warehouse line of credit, led by Edison Partners. It brings the total equity funding for the B Corp — which operates locally and in DC, the greater Maryland region and Florida — to $35 million since its start in 2015. The funding will primarily go toward the launch of three new consumer products, the company said: Cash Advantage, Convenience Offers and Buy Before You Sell.

Cash Advantage will allow buyers to make Houwzer-backed, all-cash offers, while Convenience Offers gives a seller the flexibility to move quickly with a Houwzer-backed, all-cash offer on their current home. The Buy Before You Sell product is a combination of the two, serving both the buying and selling side of the business.

These products add to the company’s original business model, which leverages technology and full-service, salaried realtors to save home sellers what it says is an average of $15,000, as well as provide home buyers a pressure-free experience. Traditionally, agents would receive a 6% fee; instead, Houwzer charges a flat $5,000 listing fee paid at closing, plus 2.5% for the buyer’s broker.

Read the full article here.

Sidecar Just Raised an $11 Million Series C

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In a new round of equity and debt financing, Center City ecommerce marketing company Sidecar just raised an $11 million Series C.

Led by Harbert Growth Partners —  a venture firm with offices Virginia, Alabama and Florida, Andre Golsorkhi’s company also secured support from previous investors Ascent Venture Partners and Osage Venture Partners on this round.

Per a company press release, the funding will let Sidecar continue to develop its machine-learning-enabled platform, which allows retailers to deploy marketing campaigns through online channels like Google Shopping, Bing Shopping and Facebook Ads. It also plans to grow staff by 40 percent in 2017, with the current headcount at 150 staffers out of its year-old Philly HQ at One South Broad and a U.K. beachhead.

According to the company, the hiring push will “draw heavily” from Philly’s tech talent pool. On the Market alert.

This Series C round brings Sidecar’s total financing to $26 million in under three years. Past investors include a roster of local investors like former GSI Commerce CEO Michael Rubin, Gabriel Investment’s Richard Vague and Ben Franklin Technology Partners.

Read the full article here.

Tridiuum Raised $9.5M Series B to Scale its Behavioral Health Platform

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Tridiuum, a venture-backed maker of a software platform that tracks behavioral health indicators, just raised a $9.5 million Series B round with an eye to scaling its sales, product and marketing operations.

The round was led by New York-based Sopris Capital, with participation from Fresenius Medical Care Ventures, Silicon Valley Bank, Ben Franklin Technology Partners of Southeastern Pennsylvania (which previously joined the company’s Series A raise) and Martinson Ventures.

Just two weeks ago, the company relocated its headquarters from Wayne to a 12,000-square-foot hub at 1650 Arch St. in Center City. From its new offices, CEO Mark Redlus — a serial tech CEO with a background in health tech and clean energy — said the funding will let Tridiuum ramp up its sales and marketing teams, as well as invest in the company’s product, which is currently used by some 4,400 patients a day.

“I joke that we’ve been in the closet, hiding under the coats, so this is kind of our coming out party,” Redlus said.

Read the full story here. 

Why Houwzer Launched This Nonprofit Fund for Low-Income, First-Time Homebuyers

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Tech-enabled real estate brokerage Houwzer this week launched the RiseUp Fund, a nonprofit to bring grants and resources to low- to moderate-income first-time homebuyers.

The Center City company’s new program comes amid a still-hot housing market and the recent re-up of the Philadelphia Housing Development Corp.’s own $10,000 grant program for first-time homebuyers, Philly First Home.

The fund, which receives $100 from every Houwzer transaction, launched first in Philly, with plans to expand to Houwzer’s other markets, DC and Baltimore next year, and Florida in 2023. Recipients of RiseUp funds get $5,000 in grants for down payments or closing costs, and go through first-time buyer educational courses.

Those eligible are considered ALICE (asset limited, income constrained and employed), per United Way. These individuals and households are those least likely to grow generational wealth, a process the RiseUp fund is aiming to change. In Philadelphia, the median income for a family in these circumstances is between $31,000 and $84,000. These folks must have saved at least $3,000 but no more than $10,000 and have a minimum credit score of 620 to be eligible for the grant.

“As we continue to navigate one of the most difficult housing climates in history, Houwzer remains committed to leveling the playing field and assuring everyone has the opportunity to achieve the American dream of homeownership,” Mike Maher, Houwzer CEO said in a statement.

Read the full article here.

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