Fintech startup Orchard seeks $75 million in convertible funding
Fintech startup Orchard seeks $75 million in convertible funding
Abstract
Led by Chief Executive Officer Court Cunningham, Orchard is attempting to raise the funds through a convertible note slated to convert at the lesser of $600 million or a discount to its next common equity round, said the people, who requested anonymity as the capital raising effort is private. Orchard spokesperson Mandy Menaker declined to comment on the "Value and structure or any aspect of investor discussions." As with all transactions that aren't finalized, it's possible terms and structure change. Boston-based Accomplice led that round, with existing investors FirstMark, Revolution, First American and Juxtapose also participating. Its gross transaction volume - the value of homes bought and sold using Orchard - was approaching an annual run rate of $1.5 billion, Cunningham said last September. The notes, which have debt-like characteristics, benefit investors by providing a limit to potential losses compared with traditional equity, which can be completely wiped out. The slowdown has slashed the market values of companies including Zillow Group Inc. and Redfin Corp., and pushed others to reduce workforces. Orchard rival Flyhomes has laid off around 200 staff, citing "Uncertain economic conditions," according to LinkedIn posts by affected employees.