Opendoor

Opendoor makes cash offers on homes and lets owners sell without listing, staging or showings. It then renovates and resells the houses, which the industry calls instant buying, or iBuying. Keith Rabois, Eric Wu, Ian Wong and JD Ross founded the company in San Francisco in March 2014. Wu was chief executive until late 2022. Carrie Wheeler succeeded him in early 2023, and Kaz Nejatian was named CEO in September 2025.

Khosla Ventures led a $9.95 million round in May 2014. The company then raised through Series A to E-2 preferred stock, according to its merger proxy, with GGV Capital, Access Technology Ventures (Access Industries' venture arm) and Norwest Venture Partners among its backers. SoftBank's Vision Fund invested $400 million in 2018. General Atlantic led a $300 million round in 2019 at a $3.8 billion valuation. Fifth Wall Ventures also held shares before the merger. At the merger, SoftBank's SVF Excalibur, Khosla Ventures, Access's AI LiquidRE and GGV Capital were each projected to hold 5% or more of the combined company.

On September 15, 2020 Opendoor agreed to merge with Social Capital Hedosophia Holdings Corp. II, a SPAC led by Chamath Palihapitiya, at a $4.8 billion enterprise value. The deal included a $600 million PIPE. Shareholders approved it on December 17, 2020, and the stock began trading on Nasdaq as OPEN after closing on December 21, 2020. Its market value was about $18 billion around the listing. Opendoor sold 18,799 homes in 2019, up from 7,470 in 2018, and revenue rose 158%. Housing then turned. In the fourth quarter of 2022 it sold about 7,500 homes at an average loss of $28,000 each, and it lost $1.4 billion for the year. It cut about 550 jobs in November 2022 and about 560 in April 2023. Its market value fell to slightly above $1 billion by early 2023. In 2024 it reported $5.15 billion of revenue and a $392 million net loss.

Opendoor shows how the 2020 SPAC route rewarded early investors. Khosla Ventures entered at the first institutional round and reached a public listing about six and a half years later. Late-stage holders such as SoftBank bought in when the model looked capital-efficient. A balance-sheet business that holds homes as inventory is far more exposed to interest rates and home prices than a software marketplace, and the drop from an $18 billion listing value to about $1 billion within roughly two years made that clear.