Home Improvement Startup Houzz Closes $400 Million RoundBy
Iconiq Capital, which manages Zuckerberg money, led funding
The company’s new valuation is said to be $4 billion
Houzz Inc., a website for home design services and shopping, said it closed $400 million in funding from venture firms including Sequoia, GGV Capital and Iconiq Capital, the multi-family office which counts Mark Zuckerberg as a client.
Iconiq Capital led the funding round that nearly doubled the eight-year-old startup’s valuation to $4 billion, said two people familiar with the matter who asked not to be identified because Houzz is closely held.
Houzz sells more than nine million products on its website, which is frequented by home improvement hobbyists and professionals. The website also lets shoppers upload photos of their home to see how a piece of furniture or appliance would look within a space.
The online market for home furnishings is expanding rapidly. In 2015, U.S. consumers spent $27 billion on furniture and related items. That number is expected to double to $55 billion by 2020, according to EMarketer. That growth is attracting Amazon.com Inc., which is expanding into the market, the Wall Street Journal reported recently.
"No other company has the community, technology, breadth or depth that Houzz has created," said Will Griffith, a partner at Iconiq Capital, in a statement provided by Houzz.
The Wall Street Journal first reported Houzz funding round.