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.
- 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.
