Proptech Firm Ownwell Raises $50M to Lower Property Taxes
What happened
Ownwell, a company that helps property owners appeal their tax assessments, announced it has raised $50 million in new funding. The company, which has surpassed $400 million in savings for its clients, is launching a national service to streamline property tax appeals amid what it calls a nationwide property tax crisis.
Why it matters
- The Series B funding round consists of $30 million in equity and $20 million in debt financing, bringing Ownwell's total funding to $74 million. Key investors in this round included Alpha Edison, Mercato Partners, and Intuit Ventures, with debt financing from Western Alliance Bank. - Founded in 2020 and formerly known as realAppeal, the Austin-based company was co-founded by CEO Colton Pace, who previously worked as an investor and venture capitalist, alongside Joseph Noor and Frank DiZenzo. - Ownwell operates on a contingency fee model, typically charging 25% of the tax savings it secures for a client. There are no upfront fees, and if the company fails to reduce the property tax bill, the service is free. - The service uses artificial intelligence to analyze market data and identify over-assessed properties, then manages the entire appeals process, including filing paperwork and attending hearings. - The national "property tax crisis" is fueled by soaring property values, which have risen nearly 27% faster than inflation since 2020. This has led to an average property tax increase of 6.9% on single-family homes in 2023 alone. - Despite rising taxes, an Ownwell survey found that while 74% of homeowners are concerned about increases, only 22% have ever formally appealed their property tax assessment. - The company reports a high success rate, with over 80% of its customers receiving a reduction in their property taxes. On average, customers who see a reduction save between $774 and $1,100 annually.
Key numbers
- Ownwell, a company that helps property owners appeal their tax assessments, announced it has raised $50 million in new funding.
- The company, which has surpassed $400 million in savings for its clients, is launching a national service to streamline property tax appeals amid what it calls a nationwide property tax crisis.
- - The Series B funding round consists of $30 million in equity and $20 million in debt financing, bringing Ownwell's total funding to $74 million.
- Founded in 2020 and formerly known as realAppeal, the Austin-based company was co-founded by CEO Colton Pace, who previously worked as an investor and venture capitalist, alongside Joseph Noor and Frank DiZenzo.
Quick answers
What happened in Proptech Firm Ownwell Raises $50M to Lower Property Taxes?
Ownwell, a company that helps property owners appeal their tax assessments, announced it has raised $50 million in new funding. The company, which has surpassed $400 million in savings for its clients, is launching a national service to streamline property tax appeals amid what it calls a nationwide property tax crisis.
Why does Proptech Firm Ownwell Raises $50M to Lower Property Taxes matter?
The Series B funding round consists of $30 million in equity and $20 million in debt financing, bringing Ownwell's total funding to $74 million. Key investors in this round included Alpha Edison, Mercato Partners, and Intuit Ventures, with debt financing from Western Alliance Bank. Founded in 2020 and formerly known as realAppeal, the Austin-based company was co-founded by CEO Colton Pace, who previously worked as an investor and venture capitalist, alongside Joseph Noor and Frank DiZenzo. Ownwell operates on a contingency fee model, typically charging 25% of the tax savings it secures for a client. There are no upfront fees, and if the company fails to reduce the property tax bill, the service is free. The service uses artificial intelligence to analyze market data and identify over-assessed properties, then manages the entire appeals process, including filing paperwork and attending hearings. The national "property tax crisis" is fueled by soaring property values, which have risen nearly 27% faster than inflation since 2020. This has led to an average property tax increase of 6.9% on single-family homes in 2023 alone. Despite rising taxes, an Ownwell survey found that while 74% of homeowners are concerned about increases, only 22% have ever formally appealed their property tax assessment. The company reports a high success rate, with over 80% of its customers receiving a reduction in their property taxes. On average, customers who see a reduction save between $774 and $1,100 annually.
