California real estate startup Radius has raised $13 million in Series A funding, according to an announcement on Wednesday.
NFX Ventures, Trulia co-founder Pete Flint, led the funding round alongside Crosscut, Los Angeles’ largest seed-stage venture capital firm. The $13 million will be used to fuel a national expansion and continue to grow its leadership team.
“We are building a real estate company that empowers entrepreneurial agents to build the business of their dreams,” Radius co-founder Biju Ashokan said in a statement. “Agents shouldn’t have to choose between forgoing their commissions and getting support from their brokerage.
“With [former Flyhomes executive] Sat [Kasle’s] experience of scaling enterprises, [former Coldwell Banker Bain executive] Barbaric [Hindle’s] experience in building great real estate brands and supporting our agents and investors, we are excited to extend Radius to real estate professionals across the country,” he added.
Radius’ journey into full-fledged real estate brokerage spanned six years, with the startup launching as an agent-focused social network and referral network Agentdesks. In 2018, the startup changed its name to Radius and caught the eye of Flint, who was impressed with Ashokan and co-founder Sanya Gurnani’s ability to build a 70,000 agent strong platform without ads. paying.
“It’s not something that I had seen to have any level of traction,” Flint told Inman of Radius in 2018. “Within Trulia and Zillow, there are community forums for communication of agent to agent, but that’s an office orientation.The real estate industry is basically ‘coopetition’ – everyone cooperates with each other and everyone competes with each other.
He added: “It’s basically a huge market. The way business is done today is done in a very analog and offline way. It’s a way to professionalize it and make it more efficient.
Since then, Radius has gone head-first into real estate brokerage operations with agents in California, Colorado, Texas and Georgia. Dubbed Radius Agent Realty, the virtual brokerage operates on a 100% commission model with two flat-rate options of $100 per month for basic support and $250 per month for access to the entire professional suite of Radius. Agents also pay coordination fees for buy-side ($900), sell-side ($1,050) and double ($1.35) trades as well as $600 for errors and omissions insurance.
Radius agents receive marketing, technology and training, legal compliance, lead generation, deal coordination and brand support, plus access to a team of success managers , marketers, designers, management brokers, mentors and coaches.
Alongside Radius Agent Realty, Radius also offers a Side-esque option for Team Leaders that allows them to maintain their brand image while Radius handles their backend operations, including finding and verifying new team members. ‘crew. Team leaders pay $350 per month and also follow the transaction and insurance fee structure for individual agents. However, they can charge a waiver to their team members.
“A lump sum structure is very important because no matter what the value of the property – it can be $200,000, $5 million or $10 million – the support provided by the brokerage will be the same,” Ashokan said. in Inman. “There is no need for the commission to be split, it should be a lump sum. This is usually how every business charges people, so even real estate should do it.
Finally, Radius offers its flagship principal concierge service, Radius Assist, and has entered the world of buying power with its own pre-sale and pre-sale home preparation financing options.
With its buy-before-sell option, Radius will purchase properties from sellers with an upfront payment of up to 75% of the current home value, allowing them to pay off any mortgages. From there, Radius makes minor improvements to the home, puts it back on the open markets, and gives sellers the edge.
“Whether it’s lead nurturing, financial products like buy-before-sale, or concierge teams, they need a lot of support to be successful,” Akoshan said of Radius’ expanding services. . “What we’re trying to sell here is a real estate company that empowers entrepreneurial agents because the agents are all founders and entrepreneurs. They don’t have to do it alone.
So far, Radius has had strong results thanks to its push in real estate sales. In Q1 2022, Radius agents and teams achieved over $400 million in sales, representing growth of 213% quarter-over-quarter and 300% year-over-year. other. The Radius referral network has also generated $25 billion in referral commissions since 2019.
“Radius’ dedication to building cutting-edge technology and great realtors sets them apart,” Flint said of Radius’ progress since becoming a lead investor in 2018. “Their access to a established network of agents across the country, coupled with their integrated technology platform and quality coaching will help established agents and the next generation of real estate entrepreneurs.”
Crosscut Ventures Managing Director Brett Brewer said he’s also excited to help fuel Radius’ next stage of growth, as they launch sales operations in Washington, Florida and Oregon and begin the process of creating a Radius mortgage product.
“At Radius, we see a chance to be part of building the next wave of great real estate talent and technology,” Brewer said. “We are excited to see Biju and the team expanding their holistic technology, coaching, marketing and real estate community to agents nationwide.”
Email Marian McPherson