Home improvement platform Houzz is in the early stages of raising a massive $500 million round that could value the company at more than $5 billion, per a Fortune report. The Palo Alto-based startup has raised about $213 million since it was founded in 2009, reaching unicorn status in 2014 with a $165 million funding that valued the company at $2.3 billion.
Houzz, which claims 40 million monthly active users, provides a platform that helps with home remodels and design. Users are able to browse a residential design database and receive project advice, product information and professional reviews; the site also provides a way for homeowners to connect with architects, designers and contractors. The company’s co-founders, Adi Tatarko (left) and Alon Cohen, are a married couple who moved to Silicon Valley and developed the idea for Houzz after struggling to renovate their new home.
Tatarko is a part of a small batch of women who have founded or co-founded billion-dollar-plus startups. The club also includes Julia Hartz, co-founder of Eventbrite, and Michelle Zatlyn, co-founder of Cloudflare. All three women co-founded their companies with male partners, which is a common trend in the startup world. The majority of investments in companies with at least one female founder go to mixed-gender founding teams, according to PitchBook data.
Houzz joins a growing list of unicorns that are opting to raise fresh funds rather than go public. Lyft, Airbnb and Qualtrics are among the notable companies that have secured big rounds at high valuations in recent months, signaling their intent to remain private for the time being.