Homeward Secures $120M to Speed Up Home Sales Amid Slumping Market

Homeward, an innovative startup designed to assist homeowners in purchasing a new home before selling their current one or securing cash offers for their properties, has exclusively reported to Crunchbase News that it has secured a $120 million Series D funding round.

The funding round was led by Saluda Grade, an alternative investment firm that specializes in asset-backed credit. Additional participation came from Continental General Insurance Co., Citi Ventures, Magnetar Capital, Norwest, and LiveOak Ventures.

Since its founding in 2018, Homeward has accumulated a total of $360 million in equity. While the company chose not to disclose the specific valuation of this latest round, it noted that the valuation remained comparable to its $136 million Series C raise in 2021, which reports at the time placed at “just north of $800 million.”

Alongside the equity financing, the Austin-based company also secured a $330 million asset-backed debt facility dedicated to funding additional home transactions. The newly acquired equity capital will be used to expand Homeward’s financing products and further invest in its proprietary technology platform.

This latest financial injection arrives during a period of increased startup investment within the proptech sector. According to Crunchbase data, global real estate-related startups have pulled in roughly $12.7 billion in seed- through growth-stage investments so far in 2026, putting the year on track to surpass the $12.3 billion raised last year. Despite this growth, overall investment remains well below historical peak years; for instance, real estate startups raised $24 billion in 2019, which stands as the second-highest year on record following the 2021 venture funding surge.

Cashing out before a sale

Operating through real estate agents, Homeward assists clients in unlocking the equity tied up in their current homes while navigating the complex timing associated with simultaneous buying and selling. Through its Buy Before You Sell program, the company provides short-term financing so homeowners can purchase their next residence prior to selling their existing home, complete with a guaranteed backup offer for the property.

For individuals looking for a quicker exit, the Sell Before You List initiative delivers a cash purchase and a rapid closing completed within a matter of weeks. Homeward then handles property renovations, lists the home on the open market, and returns the resulting profits to the original homeowner after deducting a program fee.

Founder and CEO Tim Heyl shared in an interview with Crunchbase News, “We realized that there’s an opportunity to help homeowners sell their home fast without sacrificing all of their home equity like they would have to if they sold to an investor.”

Heyl noted that this financing model has successfully enabled the rollout of Homeward’s cash-offer program across all 48 contiguous states, with plans to expand the Buy Before You Sell program nationwide before the end of the year.

This expansion stems from a strategic pivot that Heyl credits with helping Homeward more than quadruple its revenue since 2021, despite U.S. home sales dropping by approximately 30% according to company estimates.

“Our ability to really exponentially grow over the last four years or so was a huge thanks to the pivot,” Heyl stated, highlighting how the Sell Before You List product caters directly to “the home sellers that are still transacting.”

Over the years, Homeward has successfully partnered with more than 25,000 real estate agents and facilitated upwards of $4 billion in total transactions.

A pivot as homeowners stayed put

Between 2019 and 2022, Homeward focused strictly on helping homeowners buy their next property before selling their current home. Heyl explained that this service resonated strongly with consumers and agents operating within a highly competitive housing market, driving rapid growth for the company.

However, the rapid escalation of interest rates altered the landscape, making that specific customer base much harder to reach. As moving costs climbed, many homeowners who might have otherwise upsized or downsized chose to stay put.

“It became more expensive, definitely a lot more expensive, to move up, but even for a lot of people, more expensive to move down,” Heyl said.

In response, Homeward expanded its scope to serve a broader variety of sellers. Recognizing that some homeowners needed to sell without purchasing a new home amid sluggish sales timelines and unpredictable pricing, the demand for cash offers grew.

By early 2023, Homeward officially launched Sell Before You List. Heyl emphasizes that this service operates as a solution for sellers rather than an attempt to capture investment upside by buying and flipping properties.

“Once we fix the house up and sell it for its full price on the open market, we send that profit back to the original homeowner,” he explained.

Additionally, Homeward updated its original Buy Before You Sell program to reduce costs and simplify the process for a market where homes no longer routinely sell over a single weekend with multiple competing offers. According to Heyl, this offering has significantly contributed to recent growth as market activity resumes.

“Most homeowners that are trying to move up or move down still plan to use the majority of their home equity to make that next purchase,” he noted.

Homeward also provides a Buy With Cash option, allowing buyers to make cash-backed offers and subsequently refinance into a traditional mortgage after closing.

Direct-to-consumer marketing without the cost

Homeward’s distribution model relies heavily on a network of real estate agents. Having partnered with over 25,000 agents to facilitate more than $4 billion in real estate transactions, the company prioritizes long-term relationships with agents, teams, and brokerages who consistently bring clients to its ecosystem rather than marketing directly to individual consumers.

“We don’t spend a dime going direct to consumer,” Heyl said. “We don’t advertise. We don’t market.”

While some agents white-label Homeward’s offerings to incorporate them into their own branding, others utilize the company simply when a client’s existing home equity blocks them from securing a new purchase.

“Sometimes it’s just unblocking the transaction,” Heyl remarked.

This resilience and growth during challenging market conditions drew the attention of Saluda Grade, which is investing in Homeward for the first time. John Stepp, head of the firm’s growth equity fund, highlighted that Homeward’s practical grasp of buyer, seller, and agent pain points distinguished them from other operators.

“They really understood the core issues they were addressing,” Stepp stated. “It was evident in their financial performance and their growth.”

Stepp added that geographic expansion served as another key motivation, viewing the capital raise as an opportunity to introduce Homeward’s products to new regional markets.

“We recognize the product-market fit, and how useful this product set really is to eliminate some of the friction in the home transaction process for consumers,” Stepp told Crunchbase News, “and how useful of a tool it is for agents to be able to offer this.”

Using AI to speed up underwriting

Like many technology startups today, Homeward is integrating artificial intelligence into its operational workflows to minimize manual tasks associated with transaction processing and property underwriting.

According to Heyl, large language models are utilized to extract data from paperwork and assist underwriters in reviewing property inspection reports, photos, and videos by pulling out critical details regarding a home’s overall condition, roof integrity, and HVAC systems.

“AI has been huge for streamlining operations and underwriting,” Heyl said.

Looking ahead, Heyl views the primary opportunity as continuing to resolve the financial and timing complications inherent in buying and selling a home, regardless of broader housing market fluctuations.

“There’s been a major pullback, but it hasn’t changed the opportunity that exists to solve problems for buyers and sellers,” he noted.

Homeward monetizes its platform through several distinct avenues. The Buy Before You Sell program includes a 1% program fee alongside monthly interest costs, whereas Sell Before You List features a single program fee with no monthly charges. Heyl did not disclose the precise fee amount for the latter program.

Furthermore, Homeward generates revenue via its in-house mortgage and title businesses. Heyl stated that offering integrated services throughout the transaction streamlines the experience for buyers and sellers while simultaneously helping reduce the necessary program fees charged by Homeward.

Related Crunchbase query:

• Global Venture Funding To Proptech Startups In 2026

Related reading:

• Sector Snapshot: Proptech Funding Holds Up, But Investors Are Placing Different Bets
• Sector Snapshot: Real Estate Tech Funding Sees Slight Rebound, But Still Far Lower Than Peak Years

Illustration: Dom Guzman

Frequently Asked Questions

1. How much funding has Homeward raised in its Series D round?

Homeward raised $120 million in its Series D round, led by Saluda Grade, bringing its total equity raised since 2018 to $360 million.

2. What is the difference between Homeward’s Buy Before You Sell and Sell Before You List programs?

The Buy Before You Sell program provides short-term financing allowing homeowners to purchase a new house before selling their current home, complete with a guaranteed backup offer. The Sell Before You List program provides a cash purchase and closing within weeks for homeowners who want to sell fast without buying another property immediately; Homeward then fixes up the property and returns the open-market sale profit to the original homeowner minus a program fee.

3. How does Homeward acquire customers without direct advertising?

Homeward relies completely on a B2B2C distribution strategy by partnering with more than 25,000 real estate agents, teams, and brokerages who bring clients to its programs, eliminating direct-to-consumer advertising costs.

4. How is Homeward utilizing artificial intelligence?

The company leverages artificial intelligence and large language models to extract information from documents and help underwriters review inspection reports, photos, and videos to evaluate a home’s condition.

5. How does Homeward make money?

Homeward generates revenue through program fees and monthly interest charges on its financing options, alongside earnings from its in-house mortgage and title businesses.