Sell a home online-and pay absolutely nothing. That's the premise behind Nada, a residential real estate startup that's r...
Problem
Traditional real estate is offline, inaccessible, and expensive
At $36 trillion, the U.S. housing market value is nearly 2x the current U.S. GDP of $20 trillion, yet it remains stuck in the past and disconnected from the modern consumer.
Residential real estate is the largest consumer asset class for the typical American family. Representing 68% of total wealth and twice as large as retirement and savings combined.
Solution
Nada: a digital platform democratizing real estate wealth
Nada is transforming the complicated and disconnected real estate transactional model into a long-term user-based platform model. We are reimagining how everyone views, experiences, and participates in the residential real estate markets.
Product
Digital platform to manage all your real estate assets
Traction
Product-market fit with 280% YoY growth
Nada launched its Realty service in early 2019 on a simple value proposition of better service for a fair price. We raised $500k of pre-seed capital at a $10mm valuation cap from a strategic investor to establish product-market fit during this MVP phase. With over 75% of our realty clients relying on Nada to secure mortgage financing and title services, we validated the market need for a vertically integrated solution while generating over $250k in revenue.
Nada's validation during this phase led to the launch of three additional business verticals in 2020: Finance, Title, and Insurance. We launched our Seed round in mid-2020 at a $12mm valuation cap, raising over $1mm from private and public investors. In the midst of a global pandemic, we grew core revenue 280% to $600k, raising our revenue/transaction to $5.0k/tx from $1.7k/tx in 2019 and growing our GP/CAC ratio by 332%!
During early 2021, we established strategic partnerships to build out our Investments vertical (JV with Republic Real Estate) and to expand our title service nationally.
Customers
Happy customers, real savings
People love Nada. We have received tremendous praise for our commitment to delivering a high-level of service for an affordable price. Each of our customers saves an average of $10,000.
Business model
Generating revenue through a vertically-integrated platform
Vertical integration enables Nada to stack multiple services per customer acquired, allowing us to offer our realty service for as low as $0 to attract new customers.
How do we make money if we charge nada ($0)?
By continuously expanding services and stacking revenue
With strong unit economics
Allows us to reach profitability by Q2 2021 (projected)
Market
$150 billion addressable market
We service four primary verticals: real estate, mortgage, title, and insurance totaling a $150B total addressable market. Needless to say, we don’t have to capture much market share (<1%) to become a billion dollar company.
Competition
Vision and strategy
Scaling nationally with Cityfunds & Homeshares
Nada + Republic Real Estate Joint-Venture
Nada and Republic Real Estate have formed a new joint-venture. This joint-venture will form and manage a series of real estate funds, termed “Cityfunds.”
Nada provides asset acquisition, asset management, and portfolio management services for each Cityfund through our existing service verticals and technology.