Houzz.com is seeking to raise another $150 million in private funding, an amount that's quadruple what it raised a year ago and that would value the website at roughly $2.3 billion, several news reports said.
Virtually all the reports cited VC Experts as the source of the original information—a May 30 legal filing in Delaware. TechCrunch published the full document. The Wall Street Journal also cited people close to the deal as its source. None succeeded in getting Houzz to comment.
According to the filing, Houzz's latest fund-raising—its fourth since its start in 2008—calls for the sale of 2,002,039 shares worth $74.9236 each. This so-called Series D round thus raises nearly $150 million. If all 31 million shares of common stock were to sell at that new price, the company's value would total $2.3 billion.
It appears that the deal is already closed, TechCrunch reported. “Once these are filed, the deal should be done,” Justin Byers, the director of business intelligence at VC Experts, told the news service. “These filings are changing/updating their structure as to what they authorize to issue for shares." Several news reports also said that even more than $150 million might end up getting raised.
Houzz is backed by such private equity firms as NEA, GGV Capital, and Sequoia Capital, GeekWire reported, while Pulse 2.0 cited Comcast Ventures, Kleiner Perkins Caufield & Byers, and Yammer founder David Sacks. Sequoia Capital participated in an earlier round as well.The company reported more than 16 million monthly unique visitors in January, with about 35% of that audience coming from outside the U.S. Re/code noted Houzz is especially strong on mobile, with a five-star average with more than 100,000 reviews in Apple’s App Store.
"The May 30 filing with the state of Delaware indicates that Palo Alto [Calif.]-based Houzz's value has skyrocketed since January of 2013 when the company disclosed raising $35 million at a valuation that VC Experts suggested could have been at around $325 million," the San Francisco Business Times reported. "It was signed by CEO Adi Tatarko, who co-founded Houzz in 2009 with President Alon Cohen, who was previously a senior director of engineering at EBay. The company has previously raised $13.6 million."
Reuters noted that the fundraising "would put Houzz in a rarefied club of venture-backed companies worth $1 billion or more, including transportation service Uber, payments company Stripe, and home-furnishings company Wayfair."
Read REMODELING's past stories on Houzz, including: