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Khosla’s Keith Rabois leads $11.5M Series A for startup Roam, calls it ‘thefuture of the housing market’
Keith Rabois of Khosla Ventures leads an $11.5M Series A for Roam, a startup providing access to assumable mortgages, allowing buyers to acquire homes at lower interest rates. Founded in September 2023 by Raunaq Singh, Roam aims to address the housing affordability crisis by facilitating significant savings on monthly payments. The startup has already facilitated $200M in sales and aims for $1B by 2025.
Key points
- Roam provides access to assumable mortgages, potentially allowing buyers to save up to 50% on monthly payments.
- Keith Rabois led the $11.5M Series A funding round, claiming Roam is crucial for addressing America's affordable housing crisis.
- Roam has facilitated $200M in home sales in 2024 and aims to reach $1B by 2025.
- The platform lists over 2,000 assumable mortgages in Houston, making the process easier for buyers.
- Roam speeds up the closing process from 180 to 45 days and covers sellers' mortgages if it fails to close on time.
- The startup generated approximately $2 million in revenue from charging buyers 1% of the purchase price.
Why it matters
- The rise of interest rates as a key challenge in the housing market mirrors broader economic trends, emphasizing innovative solutions like Roam.
- Historically, the affordability crisis has led to a need for alternative financing options, which Roam aims to address through assumable mortgages.
- Trends in real estate tech show increasing interest in platforms that simplify the home-buying process and offer financial relief to buyers.
Roam's innovative approach to assumable mortgages and rapid growth, supported by major investment, positions it as a significant player in combating the U.S. housing crisis amidst fluctuating interest rates.