Explore potential ways to participate in the Houzz IPO before the stock begins trading. Get access to select pre-IPO companies at Equitybee.
What is Houzz?
Houzz is a home design, decorating, and remodeling website that inspires users and connects them to professionals to bring their ideas to life.
The company was founded in 2010 by married couple Adi Tatarko and Alon Cohen, who struggled to describe ideas for a home project to professionals.
Adi Tatarko serves as the company CEO.
The Houzz website stores millions of photos to inspire various design and remodel ideas. Users browse or search by room or style and can bookmark favorites on their accounts.
Shoppers can browse furniture and accessories and purchase through the retail partner program.
Another product, Houzz Pro, is a software as a service (SaaS) offering for professional designers and contractors that helps to manage end-to-end businesses.
The product helps users attract and win the right clients, run profitable projects, and deliver a standout customer experience. The Houzz Pro software subscription costs between $65 and $399 per month, depending on selected services.
The company launched Houzz TV in 2015. Houzz TV is a YouTube channel highlighting beautiful stories of amazing homes, people, and designs.
Here’s an introduction video:
Houzz headquarters are in Palo Alto, California.
Is Houzz Stock Publicly Traded?
No. Houzz is a private company.
Who Owns Houzz?
Houzz is a venture-backed private company. Its equity owners include employees, venture capital firms, and founders.
The company has raised $600 million in private funding.
The latest confirmed funding round, a Series E, was a $400 million raise completed in June 2017.
Prominent venture capital investors include Canvas Venture Fund, Comcast Ventures, DST Global, GGV Capital, Great Oaks Ventures, Iconiq Capital, Kleiner Perkins Caufield & Byers, New Enterprise Associates, Sequoia Capital, T. Rowe Price, and Zeev Ventures.
The June 2017 Series E funding round confirms the Houzz valuation to be about $4 billion.
However, the company hasn’t raised money in more than five years, rendering that valuation outdated and likely inaccurate.
Since the last valuation, the company has created its Houzz Pro software subscription product, making it a SaaS company. Companies with a SaaS offering typically receive a valuation boost because of the more predictable revenue stream.
The lull in fundraising suggests that Houzz is profitable, which would further increase its valuation.
When is the Houzz IPO Date?
The Houzz IPO date is currently unknown.
The company hired Goldman Sachs in October 2021, near the 2020-2021 IPO mania apex.
Having missed the opportunity to IPO during the last window, the author sees Houzz as a potential IPO candidate in 2023.
New private funding rounds may suggest the company intends to be patient until market conditions improve. However, Houzz has not raised money in more than five years, a likely sign the company is profitable.
Private investors and early employees may look for liquidity next year, which could lead to an IPO or funding round in the coming months.
Watch for a confidential Houzz IPO filing to kick off the IPO process in the coming year.
Bookmark this page for the latest developments.
What is the Houzz Stock Symbol? Houzz Ticker?
Houzz is still a private company, so there is no Houzz stock symbol yet.
Here are a few Houzz ticker suggestions that appear to be available in the U.S.:
What is the Houzz Stock Price?
There is no Houzz stock price yet. The company is private.
Can You Access Houzz Shares via Pre-IPO Marketplaces?
Shares may become available if early investors or employees want to cash out before the IPO. This may become more likely if the company raises another round of private equity capital or if market uncertainty continues to dampen IPO volume.
The SEC requires pre-IPO investors to be accredited, meaning a net worth above $1 million (not including primary residence) or an income above $200,000 (or $300,000 with a spouse).
Check out our list of top pre-IPO investing platforms for current share availability.
How to Invest in Houzz Stock
Since Houzz is a private company, it is challenging to become an equity owner today.
However, you can take action to improve your chances of early equity ownership or acquire shares in the IPO.
1. Access Houzz Shares on Pre-IPO investing platforms
Investors may monitor pre-IPO investing platforms such as Equitybee, Forge Global, Linqto, and EquityZen for share availability.
If shares become available, expect to pay at least a $10,000 investment minimum. It’s free to sign up for online access to pre-IPO data and deal alerts.
Pre-IPO investing platforms empower users to indicate interest in companies they wish to invest in.
If enough investors indicate interest in a particular company, the pre-IPO platforms may actively reach out to equity holders to try to acquire shares for accredited investors.
Retail investors can bypass the accreditation requirement by owning the ARK Venture Fund via Titan Invest. However, you cannot select individual pre-IPO companies, and Houzz is not in the portfolio.
As companies mature, gain more shareholders, and delay their IPO due to macro conditions, more equity holders may seek liquidation before the IPO.
2. Buy stock during Houzz IPO through a participating broker
Houzz took steps in late 2021 to begin the IPO process. However, the IPO market slowed in 2022, likely dampening aspirations until better conditions emerge.
2023 looks to be a more promising year for IPOs, and Houzz could be toward the front of the line, being what looks to be a profitable SaaS company.
IPO investors may find opportunities to invest during the IPO when it arrives. That means acquiring shares at the IPO price the night before the company begins trading.
Once reserved for Wall Street’s wealthiest customers, IPO access has become more attainable to retail investors in the past few years.
The following online brokers give customers free access to IPOs, even with low account balances:
Brokers often negotiate exclusive IPO share allocations available to retail investors.
Access to specific high-demand IPOs may be limited by which brokerage accounts you have and what broker gets exclusive access.
TradeStation has a longer track record of accessing more than 200 IPOs and secondary offerings via its partnership with ClickIPO.
But Robinhood and SoFi Invest have the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.
Read the S-1 filings to find mentions of these online brokers to find opportunities.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
3. Buy Houzz stock after the Houzz IPO
Though waiting for the IPO requires patience, there are advantages to waiting for the stock to become publicly traded before owning.
First of all, the IPO allows investors to review financials. Pre-IPO investing has limited financials available.
Second, IPO stock prices typically rise with high-demand companies. You can benefit if you’re in early and sell when the price overheats.
Many IPOs start with an immediate price increase (“the pop”). Then the stock falls once quarterly earnings reports become available.
In 2021, for example, both Rivian and Robinhood became high-flying IPO stocks. But six months after the IPO, both stocks were more than 80% below their price peak.
Stock price declines after IPOs can be excellent entry points.
Avoid buying overvalued shares immediately after the IPO. Shares often fall after the IPO due to lockup expirations and quarterly earnings disappointments.
However, the most disruptive companies will be higher in a decade. Patience pays.
Buy post-IPO stocks with any online broker. My favorite is M1 Finance, which is the best for long-term buy-and-hold investors.
M1 Finance does not provide IPO access.
4. Participate in the Houzz Directed Share Program (Pro subscribers, customers)
Can Houzz customers invest in the Houzz IPO?
Another possibility is a directed share program.
When companies file their S-1 SEC filing (to begin the IPO process), they sometimes include a directed share program for executives, affiliates, and others who helped the company grow.
Houzz can attribute its success to the small business owners that use its software to run service businesses. The company may use the IPO as an opportunity to reward customers.
This has happened before.
Uber offered shares to drivers that completed a certain number of trips.
GoPro offered shares to its email list.
Airbnb offered IPO shares to hosts.
Considering Houzz’s strong community, subscribers, and dedicated customers, IPO access would be a nice gesture.
If you’re a Houzz customer, monitor your Houzz emails as the Houzz IPO approaches, especially after the S-1 filing becomes public.
You may get a shot at IPO shares.
To representatives from Houzz — please consider offering IPO shares to your customers!
Bookmark this page for more information as the IPO approaches.
Where can I find the Houzz IPO S-1 Filing?
Houzz has hired an IPO underwriter, but we have yet to see a confidential S-1 filing with the SEC.
When the company releases the S-1 filing to investors, we’ll link to it and embed the document on this web page. We expect to see a small wave of filings in early 2023.
In the meantime, you can check out the most recent S-1 filings in our S-1 filings feed.
Investors become interested in buying companies riding extraordinary macroeconomic trends (SaaS).
However, buying the stock before an IPO can prove difficult for retail investors.
Pre-IPO investing platforms have opened more opportunities for retail investors. But private equity investing is still reserved for accredited investors.
Investors will likely find it challenging to acquire shares before an IPO.
But if you are inclined to pursue IPO shares and early equity, maintain reasonable expectations.
Good luck if you wish to participate in the Houzz IPO. Invest in pre-IPO and IPO companies at your own risk with an abundance of caution.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD, TROW, ARK Titan Venture Fund.