Investment funds connected with Jay-Z and Will Smith participated in homeownership technology company Landis' $165 million Series A private equity raise.
The round is led by Sequoia Capital. Other investors include Arrive (part of Shawn "Jay-Z" Carter's Roc Nation); Dreamers VC (associated with Smith) and existing investor Signia Venture Partners.
"Landis is an innovative company that also has a social mission we are aligned with," Smith said in the press release. "We are excited to be part of a journey that helps Americans achieve homeownership through financial education."
Including this latest funding, Landis has raised a total $182 million in debt and equity since it was founded in 2018. In April, Second Century Ventures, the strategic investment arm of the National Association of Realtors,
In August 2019, Landis raised $15 million in debt and completed a $2 million seed round from eight investors in October 2018, according to Crunchbase.
"By focusing on financial literacy and individualized coaching, Landis gives everyone the opportunity to own their home," said Roelof Botha, a partner at Sequoia Capital. "Landis' technology is particularly relevant to those with low-to-moderate income who have been neglected by traditional financial solutions." Sequoia Capital is also an investor in
Landis' technology is for renters who want to own a home in the future, but are unable to qualify for a mortgage due to their credit, the lack of a down payment or their debt load.
The technology evaluates whether the user could qualify for a loan in the next year or two. If so, they are given a budget to pick a property, which Landis then purchases. The user then rents the property while at the same time working with a Landis Coach so they can qualify for a mortgage.
Once that point is reached, the client purchases the home from Landis.
Landis also announced that the Landis Homeownership Coach mobile app is now available for the iPhone. It is a free app that gives users a dashboard of their credit, down payment savings and debt, along with suggestions on actions to take in order to be ready to purchase a home.
While rent-to-own programs are often discussed as key to increasing homeownership amongst minority populations, in 2018, New York regulators issued a warning that they can act as a cover for
"This new funding will allow us to help more Americans on their path to homeownership by expanding to new states, hiring talent nationwide and providing a better experience to our clients and partner agents and lenders," said Cyril Berdugo, a Landis co-founder.
The New York-based company currently operates in Alabama, Georgia, Indiana, Kentucky, North Carolina, Maryland, Ohio, South Carolina, Pennsylvania, Tennessee and West Virginia.
