After a $400 million capital raise, interior design services company Houzz has acquired a valuation of $4 billion.
The funding round comes after venture capital firms led by Iconiq Capital, with Sequoia, Zeev Ventures and GGV all wanted a piece of the action. Ultimately, after the funding round closed off, Houzz became one of the highest valued consumer services startups ever.
Digital Trends reports that the new valuation serves as one of the “latest unicorns” in the technology sector to achieve success without having to be a social media site.
In fact, Houzz is one of the latest tech firms to leverage technology to disrupt the real estate, housing, and home improvement industries and be successful.
Houzz was created as an online interior decorating tool that gives users access to millions of design ideas, access to a list of curated vendors, and contractors on one website and mobile phone application. Of note, Houzz released an augmented reality application for mobile phones that allows users to visualize products in their homes.
Generally, the Palo Alto-based firm lands over 40 million monthly unique visitors who seek to partake in the company’s many product offerings.
Over 1.5 million contractors and home professionals use the platform to advertise home improvement services, in addition.
Fourteen countries besides the United States have access to local versions of the Houzz platform for a community of over nine million products and services sold globally.
TechCrunch reports that Houzz could be considered fervent competition against similar companies like Pinterest—of which also has a global reach and a valuation of over $12 billion.
Houzz is a part of a growing industry as the online home furnishings and design marketplace has expanded exponentially in recent years. According to Bloomberg, American consumers spent well over $27 billion on furnishings and home décor. The number is set to exceed $55 billion in 2020.
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