Homeward, an Austin, Texas-based real estate finance startup, said this week it raised $450 million in combined equity and debt financing to expand the cash-offer and bridge-loan products it sells through real estate agents, as the company looks to keep growing even as U.S. home sales remain sluggish.
The round includes $120 million in Series D equity and $330 million in new asset-backed debt facilities, according to citybiz. Alternative investment firm Saluda Grade led the equity portion, with participation from Continental General Insurance Company, Citi Ventures, Magnetar, Harmony Partners, Norwest, Adams Street Partners, LiveOak Ventures, Era Ventures, Javelin Venture Partners and Parker89.
Homeward's products let homeowners make non-contingent cash offers on a new property, or receive a cash offer for their existing home, before their current house has sold — a service aimed at removing the financing uncertainty that can sink a deal in a slower housing market. The company says it has worked with more than 25,000 real estate agents and financed over $4 billion in residential transactions since it was founded in 2018.
Betting on Agents in a Slow Housing Market
"Guidance and expertise from trusted real estate agents will always be at the center of every successful home transaction," said Tim Heyl, Homeward's founder and chief executive, in a statement. "This investment allows us to expand our cash offer and bridge financing solutions, helping agents win more business, deliver a better client experience and close more deals."
The raise comes as existing-home sales have cooled from the pace of recent years, squeezing the agents and brokerages that depend on transaction volume to make a living. Startups like Homeward are betting that financing tools which speed up closings — rather than new listing or search technology — are what agents need most to keep deals together. Investing.com reported the financing lifts Homeward's total equity raised to roughly $360 million since its founding.
The debt-heavy structure of the round — nearly three-quarters of the $450 million is asset-backed financing rather than equity — reflects a broader shift among proptech lenders toward capital that can be deployed directly into home-purchase transactions, rather than spent on growth and marketing. For Homeward, the bet is that deeper balance-sheet capacity, not just a higher valuation, is what will let it scale its agent network through a prolonged housing slowdown.
