Austin real estate tech firm Sellers Shield lands $15 million, plans expansion

Fast-growing real estate tech company Sellers Shield has raised $15 million to break into new markets across the country.

The Austin-based company received the funding from venture capital firm Elsewhere Partners, also headquartered in Austin. Sellers Shield previously received $2.7 million from friends, family and investors.

Founded in 2015, the company has developed a digital platform for real estate disclosure forms that it says reduces the likelihood of lawsuits for sellers, agents and brokers, and provides legal protection for home sellers when a lawsuit occurs.

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The products, which were designed by legal experts, provide sellers of residential real estate protection both before and after the sale. The platform shows sellers how to minimize the chance of being sued, particularly concerning the completion of the state mandated seller's disclosure form, the most common source of lawsuits of buyers against sellers.

Sellers Shield's tools include videos that highlight key areas of concern for sellers. Its Legal Wizard offering guides sellers through each question as they fill out the disclosure notice online. A fully completed disclosure notice is then emailed to seller and agent, eliminating the risk of incomplete and eligible forms, Sellers Shield says.

The company's Home Sale Legal Protection service offers home sellers up to $20,000 in expert legal representation should a lawsuit occur.

The company works with brokerages, associations, and software providers including Keller Williams Realty, Compass, eXp World Holdings, RE/MAX, Coldwell Banker, Berkshire Hathaway HomeServices, Texas Realtors and Lone Wolf Real Estate Technologies.

Bo Blackburn, real estate attorney and co-founder of Sellers Shield, said disclosure documents are at the center of most home sale disputes, and sellers are historically the only party in the transaction not protected.

“Disclosure can be the poison pill in any home sale," Blackburn said. "We’re on a mission to prevent lawsuits for the residential real estate industry and protect home sellers from the financial and emotional hardship that stems when home sale lawsuits occur." 

Blackburn said the new investment will allow the company to expand nationally, reaching more agents and sellers more effectively.

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Sellers Shield has expanded to 12 states after originally launching in Texas. In the past three years, 200,000 agents and sellers have used the platform for disclosure, the company said.

“Agents want their clients and business protected from lawsuits, which is why our platform has taken off in the market and become the gold standard for disclosure,” said Jeff Daily, CEO of Sellers Shield.

The funding will be used to expand the company’s reach across the country, including Kentucky, Michigan, and Minnesota. It will also invest in product development.

Sellers Shield currently has 24 full-time employees and plans to add up to 20 more over the next year, with as many as possible in Austin, officials said.

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New positions include lead management roles such as head of product, head of marketing, vice president of finance and head of sales. In addition, the company will add employees in development, inside sales, customer service, marketing and accounting.

The company does not disclose financial information, but said it is on track to triple annual revenue by the end of 2021.

“Sellers Shield is innovating at the intersection of real estate and risk management. They have streamlined home sale disclosure forms to protect homeowners’ equity and mitigate risk for agents and brokerages,” said John Thornton, Elsewhere Partners co-founder and partner. “We are thrilled to partner with Bo and Jeff as they deliver increasing value to real estate transaction stakeholders across the country.”