Angel investments don’t often begin with an unexpected call to your startup’s toll-free number.
Seattle-based Nexme had launched its minimally viable product (MVP) and its team was working long hours to make improvements to its real estate buying app. The caller, Mark Montgomery, a real estate investor with more than 30 years in the sector, had checked out their platform and wanted to learn more.
The call led to hours-long meetings assisted by butcher paper and colored pens, said Nexme co-founder and CEO Arian Abdulkader. Montgomery “drew pictures and took notes as I talked him through our vision of Nexme,” Abdulkader wrote in a blog post. “He was impressed with our business model.”
After many meetings over three months, Montgomery wrote a check to the company as its first angel investor. It brought Abdulkader to tears.
“When we came upon Mark, who happened to be a user of the platform, he really understood that market and what we were trying to do. Having someone believe in your vision and what you’re trying to bring to life is really an emotional moment,” said Vanessa Alvarez, co-founder and chief operating officer for Nexme, in an interview.
Nexme just completed a $500,000 seed round. In addition to support from Montgomery, the business has a second, unnamed angel investor who formerly worked at Microsoft and has spent 25 years investing in real estate.
The founders say they want to be the Uber of real estate, providing a cheaper way to buy and sell homes without hidden costs.
Nexme charges sellers a 1.5% commission fee — roughly half of the traditional rate. It connects the site’s users with licensed real estate agents who have at least two years experience and have done at least 10 transactions. Through the agents, it provides home sellers with services including staging, photography and open houses.
Home buyers using Nexme get half of the buyer agent’s commission fee returned to them when they make a purchase, and the Nexme real estate agents receive the other half of the fee. Nexme does not take any of the commission in the exchange.
The startup charges agents, inspectors, builders and others involved in the process a monthly subscription fee.
Buyers and real estate agents have the opportunity to rate each other and properties being listed.
It has joined a host of other Seattle-based companies in the home realty space, including publicly traded Redfin and Zillow Group.
“There is a lack of transparency in the market that is not in the home sellers’ or buyers’ favor,” said Alvarez.
The startup released its MVP in early 2018. Starting in May 2019, the company was part of the Washington Technology Industry Association (WTIA) Founder Cohort Program. The team now includes nine employees.
Nexme is operating in Seattle and will be launching in Boston at the end of August. Their next target market is California.
Editor’s note: This story was updated Aug. 23 to clarify the return of fees for home buyers.
