Opendoor, an online real estate marketplace cofounded by WashU Olin alum JD Ross, will gain a $1 billion infusion in an acquisition that values the company at nearly $5 billion.
Ross, BSBA ’12, cofounded Opendoor in 2014. He was responsible for building the prototype of its online platform and worked until 2018 as the company’s head of product development.
Opendoor offers homeowners a means to sell their houses instantly, without the heartache of weeks or months on the real estate market. Today, Ross is a partner in San Francisco-based venture capital/private equity firm Atomic.
CNBC reported the acquisition of Opendoor, interviewing Chamath Palihapitiya, founder and CEO of Social Capital Hedosophia II. The deal essentially rolls Opendoor into Social Capital, Palihapitiya’s publicly traded special-purpose acquisition company. Proceeds from that firm’s April IPO, along with $600 million from a group of investors that includes Palihapitiya and funds managed by BlackRock, will mean an infusion of just over $1 billion for Opendoor.
CNBC reported that the $4.8 billion valuation for Opendoor is nearly equal to the company’s 2019 revenue. Opendoor operates in 21 markets and says it sold more than 18,000 homes last year.