Builder Backed founder Paul Koop wants his company to be the “Carfax” of homes.
After buying a home built in 1892—and moving four times over five years—Koop was frustrated by the lack of accessible information about his property’s maintenance history.
Koop also struggled to find reliable contractors after moving away from his father-in-law, an experienced tradesman he had often relied on for guidance with home repairs. Popular home-service platforms, such as HomeAdvisor and Angi, proved inadequate for Koop, as they did not provide a way to ensure projects were completed to a satisfactory standard, he told Middle Tech’s Logan Jones.
These challenges inspired Koop to develop his own solution. In 2023, he founded Builder Backed, envisioning an all-in-one digital platform that would maintain a comprehensive record of a home’s construction, maintenance history and improvements. The platform would also serve as a concierge service for homeowners, connecting them with a vetted network of contractors to handle repairs and renovations.
“You buy a car from Lexus, Toyota, Honda – they offer a service center where you can bring the car back,” Koop said. “They understand the car. They know the ins and outs of it. They'll tell you when to come in for your service. That's exactly what we're bringing to the home building space.”
Koop, a millennial himself, wanted a platform tailored to his generation as its members enter their peak earning years and start families. According to Opendoor, millennials account for 38% of all home purchases in the United States, while a Redfin analysis found that 55% of millennials owned homes.
Koop’s thesis is that millennials and members of Generation Z grew up in an increasingly digital environment, spending more time on computers and smartphones than developing hands-on skills in areas such as plumbing and electrical work.
“The millennial home buyer, who's the target customer, the ideal customer in a lot of cases, he's having that family, he’s starting to really look to move into a house for the first time – they didn't grow up playing with tools,” he said.
As these generations enter homeownership, he believes many will encounter unfamiliar maintenance responsibilities that can be expensive and time-consuming. Without established relationships with reliable, trustworthy contractors, navigating these challenges can be even harder. That’s where Builder Backed’s network can help.
Builder Backed operates on a performance-based revenue model, where contractors and other service providers pay the company upon completing a project. Unlike traditional home-service platforms, which generate revenue by selling customer leads to contractors, Builder Backed only receives payment when a project is completed.
Koop believes this approach synchronizes the interests of homeowners, contractors, and the platform itself.
“It’s aligned incentives,” he said. “We want to get projects to the end, but if homeowners aren’t happy, payments aren’t released. If projects don’t get finished appropriately, on time, etc. – we’re not making any money. What we've tried to say is: how do we create an incentive model that is aligned for all parties.’”
In 2024, Builder Backed partnered with Northern Kentucky-based Fischer Homes, the 31st-largest homebuilder in the country, to offer its services directly to Fischer homeowners through an integrated online portal.
Through the partnership, Builder Backed gains access to Fischer’s construction documents, floor plans and product specifications, allowing the company to help homeowners plan maintenance, repairs and renovations. The arrangement also gives Builder Backed direct access to Fischer Homes’ customer base, reducing the need to acquire customers individually.
Koop said Fischer Homes also found that offering ongoing home maintenance and improvement services helped it stand out from competitors. Prospective buyers could purchase a newly constructed home knowing they would have access to assistance with future renovations.
The partnership also provided Builder Backed with credibility. By working with an established homebuilder like Fischer Homes, the young company was able to develop and validate its business model, demonstrating the platform’s potential value to homebuilders nationwide.
Builder Backed initially launched in Greater Cincinnati before expanding to other markets, including Louisville, Dayton, Columbus, Atlanta, St. Louis and Indianapolis. Koop’s goal is to expand the company’s reach even further.
“Let's get this in front of every single top 100 builder across the country in the next year,” Koop said.
Listen to Koop’s full conversation with Logan here.
