The housing market is changing. Homes are still selling fast but not as quickly as they did in 2020 and even 2021.
Aware of this softening market and backed by a recent $3.5 million equity raise, Denver-based startup Guest House aims to help realtors and homeowners use technology to their advantage through tech-enabled home staging.
Guest House is used by realtors and homebuyers in Denver, Boulder, Vail and San Diego, California.
Here’s how it works. The platform partners with realtors and home décor brands to stage homes first digitally and then in person. It also allows consumers to buy the furniture and décor used to stage each property.
“We’ve proven that the tech-enabled model and platform we've built is really delivering value to customers and the unit economics are delivering huge ROI to the business and our investors,” Alex Ryden, founder and CEO of Guest House said. “[We decided] this is a great time to raise more capital, go deeper in current markets and look at accelerating into future markets to help more people, more homeowners [and] more realtors sell homes faster for more money by making staging accessible to everyone.”
This latest equity raise was led by Break Trail Ventures with participation from national real estate broker Douglas Elliman, Sweater Ventures, Denver Angels, Caruso Ventures, Range Ventures and other existing investors.
“With a slower real estate market, staging is becoming increasingly more important to agents as a professionally staged home spends 73% less time on the market compared to those without staging,” said Cara Morphew, a partner with Sweater Ventures. “Agents are now looking for new, creative ways to move the needle, which is a perfect entry point for Guest House."
Prior to Guest House, staging a home was a labor-intensive process. With the fresh capital, Ryden said he plans to automate more of the staging process and continue investing in the startup’s technology. Adding technology to an industry that lacks it not only helps Guest House stand out but has attracted notable investors like Denver Angels.
“Everyone we spoke to about their experiences staging their home or buying a staged home seemed to intuitively understand the need to streamline and improve the staging process,” said David Prichard, CEO of Denver Angels. “Guest House is bringing innovation to an industry that has historically been people-heavy and tech-light and we're excited to be a part of the journey with them.”
The fresh funds will also help Guest House quickly launch into new markets and scale its presence in its current locals. The platform will launch in Orange County, California this summer, Ryden said.
Rolling out new partnerships with furniture, nursery, bedroom and outdoor patio brands, such as bedroom furniture designer Thuma, is also a top priority for the startup.
“It’s becoming harder and harder for direct-to-consumer brands to compete and convert customers online,” Ryden said. “They are looking for offline ways to find customers and showcase their products in the real world. We’re the cheapest, most affordable solution for them to get in front of the homebuyer first and directly engage with them in the real estate market. ... As we grow, we're creating more opportunities for brands to show their products.”
Prior to this round, Guest House raised a $3 million seed round in June 2021. Since then, the startup has grown from two full-time employees to 10 and was named by the DBJ as a startup to watch in 2023.
