Flatfair raises $11 million
Flatfair, the UK-based startup that allows tenants to rent a new property without a deposit, has raised $11 million in a funding round led by Index Ventures.
Founded by alumni from Google, Deutsche Bank, American Express and McKinsey, Flatfair allows tenants pay a one-off membership fee and landlords get up to double the protection compared to a traditional deposit. The startup, which claims to have already saved tenants over £4,000,000 in deposit fees, also offers instant referencing which enables managing agents and landlords to reference tenants in minutes which in turn can result in same day move-ins.
Flatfair has partnered with Spicerhaart, CBRE, Greystar and Hunters, and according to its site, it has the backing of AmTrust Financial.
“Like much of Britain’s housing stock, its rental sector is stuck in the Victorian era. Thankfully, cutting edge payment technology can boost transparency, build trust and make instant move-ins a possibility. This is a great competitive advantage for landlords. Renters and policymakers have been trying desperately to improve standards across the market. Now, with institutions like Legal & General and LaSalle funding build-to-rent homes alongside thousands of highly professional private landlords, we’re seeing higher standards of service filter through the entire market.” – Flatfair CEO Franz Doerr.
“Around $300bn is tied up in deposits globally, so freeing up just a fraction of this money would make a huge difference to millions of renters who deserve a fairer and more transparent service. But flatfair has the potential to become the ‘Paypal of property rental’ by offering a range of solutions beyond referencing and deposit management. There is huge potential for technology to help real estate companies manage operations and revenue in a more streamlined fashion, while offering tenants a better, fairer service. flatfair is already working with global companies like CBRE and Greystar to do this, and today’s announcement will help further expand the flatfair offering. I am very much looking forward to supporting flatfair on an exciting journey ahead.” – Martin Mignot, Index Ventures.