Home buying fintech startup Tomo, led by former Zillow executives Greg Schwartz and Carey Armstrong, has logged one of the largest seed rounds in history, scooping $70 million just eight months after founding.
Tomo's proprietary technology includes pre-approvals within hours not days, and guarantees an on-time closing - putting buyers in a much stronger, and more certain, position.
"In today's housing market, buying is not an enjoyable experience; it has become competitive, stressful, and confusing, and too many people are coming away from it empty handed. As single family homes become commoditised by investors, the American dream is moving further and further out of reach. We are going to change that," said Tomo CEO and co-founder Greg Schwartz. "We will work only with buyers, we won't do refinancings, and we will close on-time, every time. No one else in this space can say that and mean it."
Launching initially in Seattle, Dallas, and Houston - with more markets to come later this year - Tomo will target areas where rising home prices and competition are crippling first-time and millennial homebuyers. In May 2021, prices on single family homes in Seattle sold for 7.3% over the asking price on average due to pent-up demand. In Texas, median home prices have grown 17.3% year-over-year.
Unlike more automated startups in the space, Tomo Brokerage will connect buyers to top local agents who know the ins and outs of markets they serve. To that end, the company formed a partnership earlier this spring with the real estate industry's leading coaching and training company, Tom Ferry to build out its network.