PropTech startup Ownwell raises $5.75M Seed funding to help commercial and residential property owners save money on property taxes
A large majority of American homeowners overpaid on their property taxes but didn’t know it. According to a report from The National Taxpayers Union Foundation, between 30 and 60 percent of taxable property in the United States is over-assessed, and this leads to higher property tax bills.
However, less than 5 percent of homeowners will challenge or dispute your property taxes. Now one company is on a mission to help commercial and residential property owners save money on property taxes and reduce unfair assessments, and empower property owners to take back their rightful savings.
Enter Ownwell, an Austin, Texas-based PropTech startup that specializes in reducing property taxes for property owners. Each year, Ownwell analyzes millions of properties to identify property owners who are overpaying and offers to protest their tax assessments on their behalf for just 25% of any savings they are able to achieve.
To further grow its operations and expand its footprints, Ownwell announced today it has closed $5.75 million in Seed funding led by First Round Capital. Additional investors in the round include Wonder Ventures, Founder Collective, Long Journey Ventures, and former PayPal board member Scott Banister.
Founded in 2020 by Colton Pace, Frank DiZenzo, and Joseph Noor, Ownwell identifies property owners who are overpaying their property taxes and earns them reductions on their tax bills. Homeowners are paying billions of dollars extra because of inequities in assessing property values.
“Property owners have a lot to consider when deciding to protest: the costs in time and money, the complexity of the process, and the access to real estate expertise and advice,” said Colton Pace, Ownwell’s CEO. “As part of our mission to reduce the inequities of property ownership, Ownwell handles the entire process of appealing on behalf of property owners and charges the lowest fees currently on the market. We ensure all property owners, regardless of financial status, have access to the tools, resources, and information they need to manage their property taxes with confidence.”
The new capital will be used to further Ownwell’s position as the most technologically advanced firm in the tax protest space. The team, which has grown by nearly 7x over the past nine months, will accelerate its hiring in all areas: sales, marketing, technology, operations and local experts to maximize savings for Ownwell’s customers.
Following a quick sign-up process, property owners instantly receive a savings estimate from Ownwell based on current sales and valuation data. If someone chooses to protest their assessment, local property tax experts use proprietary best-in-class software to build the best case possible. Ownwell’s Savings-or-Free Guarantee means customers only pay if Ownwell saves them money. The company estimates that nearly nine out of 10 protests are successful, and customers save an average of $1,457.
Over the past nine months, Ownwell’s customer base has grown by 40x, with operations currently in Texas, California, Washington, and Florida with further plans to expand.
Commenting on the funding, Bill Trenchard, partner at First Round Capital, said: “First Round Capital is excited to back the Ownwell team. Real estate is often the most valuable asset homeowners and investors own, but it’s difficult to track and manage the rising costs of property taxes, insurance, financing, and more. Ownwell is building a platform to help property owners reduce their property taxes and manage the other costs of ownership with confidence.”