Backflip, a startup aiming to revolutionize the house flipping industry, has secured $15 million in a Series A funding round led by FirstMark Capital. The company offers a unique service to real estate investors, providing them with short-term loans to fund their property purchases. Founded in late 2020, Backflip has quickly gained traction in the market by offering a tech-driven platform that helps investors source, track, and evaluate potential investments.
CEO and co-founder Josh Ernst explained that Backflip’s platform helps investors make better buying decisions by analyzing deals and curating their investment pipeline. Despite entering the market during a challenging period of rising interest rates, the company managed to grow its revenue nearly 5x in 2023, reaching an annualized revenue of $10 million and claiming to be “near profitability.”
With a total of $28 million in equity and $67 million in debt financing raised so far, Backflip has funded over 900 homes since its launch in mid-2022. Users on the platform analyze an average of $5 billion in properties each month, realizing an average gross profit of $82,000 per property. The company’s unique approach to underwriting business plans, assets, and people sets it apart from traditional lenders, offering a faster and more efficient loan process for investors.
Adam Nelson, managing director at FirstMark, sees enormous potential in the house flipping market, emphasizing the importance of bringing existing housing stock up to standard. Backflip’s success in growing its business efficiently and its potential to institutionalize the fix and flip asset class have impressed investors, positioning the company as a key player in the $100 billion+ annual transaction market.