Real estate finance platform Upfront announced it has raised $1.5 million in equity and $1 million in debt funding to transform broker-agent financing. This funding round, which was led by Diagram Ventures with participation from ROC Venture Group, enables Upfront to officially launch and provide exclusive financial solutions to help brokerages attract, retain, and empower top-performing agents.
Agents deal with many costs and fees, with commission payouts taking up to three months. This places an undue financial burden on the agent in the home transaction, who’s often forced to utilize costly credit products when they need funds to support their business.
Upfront aims to fairly provide early access to these earned commission dollars fairly, reducing wait time and costs by up to 66% while empowering agents with vital new tools to build their financial health. The company’s unique model includes partnering with brokerages to drive down fees for agents and offer greater transparency without impacting credit scores.
Mukund Venkatakrishnan (a two-time entrepreneur) launched Harvard’s first cryptocurrency conference and a real estate brokerage while a student there. And Pierre Calzadilla (a four-time revenue builder) is a former broker and 16-year veteran of the proptech industry. He built and scaled revenue and growth teams at Trulia, RealScout and Local Logic.
KEY QUOTES:
“Payday loans and credit cards exploit financial needs by trapping agents in a debt cycle with high interest rates. At a time when the real estate industry is facing big commission pressure and sales volume is at a historic low, we saw an opportunity to create real estate-native financial products that truly serve their users.”
-Upfront co-founder and CEO Mukund Venkatakrishnan
“It’s expensive to be a real estate agent, and it’s time to bet on the critical role agents play in the home transaction process. Upfront believes in the critical services agents provide, and we will empower them to reinvest in their business and financial well-being.”
-Upfront’s co-founder and COO Pierre Calzadilla
“Diagram is excited to support the Upfront team on their mission to provide better financial products to the real estate broker community. We think there is a huge opportunity to better serve this massive market with new and innovative technology.”
-François Lafortune, co-founder and CEO of Diagram
“Upfront’s value proposition and business model align with our belief that innovative, tech-driven platforms that create win-win situations for all stakeholders lead to strong returns in any industry. The market is ripe for innovation that truly impacts the bottom line, and we look forward to working with Muk and Pierre to set a new standard in transaction optimization that aligns incentives and drives value for brokerages and agents alike”
-ROC Venture Group Partner Dave Comiskey
