Sydney-based Before You Bid, a company that offers building and strata reports to home bidders, has secured $5 million in its Series B funding round.
Series A investors, New Zealand’s Gillespie family and Square 1 Group, participated in this round as well. The Gillespie family sold retailer Ezibuy to Woolworths for over $300 million a decade ago, while Computershare co-founder Tony Wales owns Square 1 Group.
Brothers Rhys and Jordan Rogers founded Before You Bid in 2015. Jordan, a former executive director at UBS and head of small caps research, transitioned to the startup as its COO in late 2019.
The startup operates a platform that enables home bidders to purchase pest and strata inspection reports at a reduced price.
In inner Sydney suburbs, house auctions typically draw 3.7 to 3.8 bidders per property, who each pay $400 to $700 for individual inspection reports. Before You Bid allows bidders to share report costs, reducing their expenses to as little as 10% of the original price.
The concept involves one report shared across multiple interested parties, leading to lower business for inspectors. However, Before You Bid handles administration, marketing, and upfront payments to expedite payments for inspectors.
The company acquires business through real estate agents, databases like InfoTrack, and intermediaries such as conveyancers. A recent partnership with Domain will add links to search and buy reports on property listings.
In 2021, the company hired former Domain executive Jon McConkey as its CRO. McConkey previously held positions as Director of Corporate Partnerships and Head of Agent Services at Domain.
Before You Bid intends to conduct a larger private funding round within the next 12-18 months and has future aspirations for a public listing.