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Houzz raises a huge $400M round at a $4B valuation

Houzz raises a huge $400M round at a $4B valuation
From TechCrunch - June 24, 2017

If you ask investors in Silicon Valley about Houzzan app where you browse ridiculously nice homes and check out interesting interior design ideastheyll probably quietly mutter that theyre just growing their business. We really dont hear about Houzzs business that often.

Except now the company says it has raised $400 million led by Iconiq Capital, with Sequoia,Zeev Ventures and GGV also participating in the round. The new financing round values the startup at $4 billion, according to Bloomberg, making it one of the higher valued consumer startupsand based around house decorations, no less. The company has launched a localized version in 14 countries outside of the U.S., and the Houzz marketplacenow has more than 9 million products from more than 20,000 sellers.

Houzz is still keeping at work on the product side. The company launched a basic augmented reality mode in May. With theupcoming release of ARkit for iOS, we may see that kind of feature evolve and become more robust in the coming months. But bringing those big-ticket items into a users home while theyre already in a mode for searching for home-related content could prove even more of a hook for the company.

Im not a Houzz customer, but I can definitely say the app is a guilty pleasure. With its pleasantly curated photos with interesting designs and products, Houzz is basically a niche Pinterest for your future home. The difference is the kinds of products that Houzz can target and sell can be higher-value, meaning the people that actually buy products through Houzz are probably more valuable than the typical customer you might find on a larger platform like Facebook or Pinterest.

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