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Houzz will be valued at around $4 billion in a new funding round led by Iconiq Capital

The company expects to close a deal for a new $400 million investment.

back porch of a house
Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.

Houzz, the popular photo site used by homeowners to plan renovations, is finalizing a new funding round of $400 million that will value the startup at around $4 billion, a spokesperson confirmed to Recode.

The new investment is being led by Iconiq Capital, according to a person familiar with the deal. Iconiq is the high-powered but low-profile investment firm that has managed money for the Silicon Valley uber-wealthy like Mark Zuckerberg and Sheryl Sandberg.

Past Houzz investors GGV Capital and Sequoia Capital are some of the firms pouring more money into Houzz in this round, this person said. Fortune first reported the size of the round and the valuation.

Houzz was founded in 2009 by CEO Adi Tatarko and her husband Alon Cohen as an online destination for home and decor photos meant to inspire homeowners embarking on renovation projects. Put another way, it’s Pinterest with a narrower focus.

The company’s first revenue streams included advertising and paid listings, which allow contractors, designers and other home service providers to get preferred placement in front of local homeowners browsing the site.

Over time, Houzz also added an e-commerce marketplace where merchants can sell the furniture and decor found in photos. The company makes a commission off of these sales, and a source told Recode that this is the fast-growing piece of its business.

With the new money, Houzz will have raised more than $600 million. And with the new valuation, it is getting increasingly hard to imagine Houzz getting acquired, versus pursuing an eventual IPO.

Correction: An earlier version of this story misstated the year in which Houzz was founded.

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