Seattle-based real estate investing platform Arrived Homes continues to raise money.
On Tuesday, the startup announced a $25 million Series A round, following up on a $37 million round in June of last year that included $10 million in equity financing and $27 million in debt financing. Arrived also secured $100 million in credit financing in December.
With the new funding, Arrived co-founder and CEO Ryan Frazier said the 34-person team will likely at least double in size over the next year.
"We've grown the team really in lockstep with the areas of the business where we need to add team to make progress," Frazier said. "A lot of the things that we're doing today may or may not require someone to join the Arrived company to facilitate scaling."
Arrived, founded in 2019, allows people to invest in rental properties with the goal of making passive income through quarterly returns. Arrived manages the properties and taxes, and investors can invest anywhere between $100 to $20,000. The company currently offers long-term rentals but is looking to move into short-term rentals as well. Frazier said Arrived aims to launch short-term rental investing this summer.
Arrived currently has more than 100 fully funded properties across 16 metro areas, according to the company. Over the next year, Frazier said the goal is to have more than 1,000 properties across at least 40 markets. He added that investors are investing in more than five houses each on average.
Forerunner Ventures led the $25 million round, while Bezos Expeditions, Good Friends, Spencer Rascoff, Core Innovation Capital, PSL Ventures and Neo participated. Forerunner Ventures' portfolio includes companies like Zola, Chime and Dollar Shave Club.
Frazier said Arrived has a remote-first model, but about 40% of the team is based in Seattle. The Seattle team meets roughly once a week at a WeWork in South Lake Union, he added, and the full team gets together at least twice a year.
"We just did that two weeks ago in Nashville for our 100th house," Frazier said. "We like to use that as a time to visit our markets that we're in."
