NewHomesMate, formerly known as Propertymate, a proptech startup that simplifies the homebuying process for new construction homes, has announced the successful completion of a $5.5 million seed funding round. The funding will be used to expand into new markets across the United States.
The rebranding to NewHomesMate reflects the company’s renewed focus on the new construction homes market and its mission to provide homebuyers with an exceptional experience when navigating and purchasing newly built homes.
Founded by Dan Hnatkovskyy and Sofia Vyshnevska in 2020, NewHomesMate previously raised $1 million in a pre-seed round led by Pragmatech Ventures, who also participated in this latest funding round.
The seed round secured $5.5 million in investments from Gaingels, Geek Ventures, Asymmetry Ventures, Unpopular Ventures, Flyer One Ventures, U.Ventures, Verras Capital, SID Venture Partners, and Pragmatech Ventures. Notable angel investors in this round include David Morrison (former CEO of Oliver Wyman), Adrian Slywotzky (American economist), Jonathan Wasserstrum (founder of SquareFoot), John Gu (Norwest Venture Partners), and Benny Czarny (founder of Opswat).
The United States is currently facing a housing shortage crisis, with a gap of 6.5 million homes between single-family home constructions and household formations from 2012 to 2022, according to Realtor.com. The COVID-19 pandemic has shifted people’s perspectives on their homes and desired living locations.
In many markets, new construction homes became the preferred option for homebuyers to avoid competitive bidding wars and escalating housing prices. However, with rising interest rates, the landscape has changed. Builders have had to adapt to the evolving market by providing different options and incentives to make new builds more attractive.
Despite the demand for new construction homes, the process of finding information and navigating the home-buying journey remains confusing for homebuyers. NewHomesMate aims to address this challenge by launching a new construction home marketplace.
Since its previous fundraising round, the company has expanded its services to nine new markets, including Dallas, Houston, Orlando, Jacksonville, Tampa, San Antonio, Miami-Ft. Lauderdale, Raleigh-Durham, and Ocala-Gainesville, in addition to its initial market, Austin, Texas.
With the new capital, NewHomesMate plans to prioritize expanding its services to an additional eight markets, including Atlanta, Phoenix, Charlotte, Charleston, and Denver, within the next year.
The funding provides an opportunity for the NewHomesMate team to extend its reach and deliver greater value to homebuyers and builders. The company, headquartered in Austin, currently employs a team of 91 people and plans to expand further. Although the startup operates in the US, both founders were born in Ukraine and managed to grow the business despite the challenges of the ongoing war and working remotely from Ukraine.
