Home Bay Technologies, a San Diego-based digital real estate company, raised $13.5 million in a Series A round, it announced on Jan. 8.
The company allows buyers to research and make offers on properties without being tied to a real estate agent. For sellers of a property, the company offers its real estate services for a flat fee, rather than the traditional, commission-based model.
Signal Peak Ventures, a Salt Lake City-based venture capital firm, led the funding round, with participation from Sierra Ventures and E15 VC.
Home Bay credited the San Diego Venture Group and its president, Mike Krenn, with helping build the relationships that led to the funding.
"The traditional real estate model is slow, cumbersome, and costly for consumers. Home Bay is revolutionizing the way people buy and sell homes with a platform that streamlines the entire process," Home Bay CEO Ken Potashner said in a news release. "This backing from Signal Peak Ventures strengthens Home Bay's position as the only full-service digital real estate company.”
Since it was founded in 2015, Home Bay has expanded to six states. It also expanded its platform by taking a 50 percent stake in national settlement services company OTC National LLC in May. The deal let Home Bay integrate OnTitle’s escrow and title insurance services into its offerings.
Home Bay said it would use the funding to expand into more states, and integrate other service providers.
"We are thrilled to work with Home Bay on their mission to improve the home buying and selling process,” Signal Peak Ventures Managing Director Scott Petty said in a news release. "The method of buying and selling a home has been stuck in the past for decades. Our firm has looked at several attempts to change this model. When we saw Home Bay's approach, we knew it had the solution to change the residential real estate industry forever."