08 Oct Doorstead Raises $3.3 Million to Create the Opendoor for Rentals
Former Uber, DoorDash and Goldman Sachs team pioneers new class of risk-free property management (iRenting) by providing landlords guaranteed rental income, regardless of occupancy (e.g.: $5,500/mo starting in 28 days)
SAN FRANCISCO–(BUSINESS WIRE)–Doorstead (“Opendoor for Rentals”), an operations-technology company, is leveraging big data and operations technology to disrupt the $50B+ property management industry. The company is pioneering a new class of risk-free property management (iRenting) by providing landlords guaranteed rental income, regardless of occupancy (e.g. $5,500/mo starting in 28 days). Today, Doorstead is announcing it has raised $3.3 million in funding. The seed round was co-led by global investment firms M13 and Silicon Valley Data Capital with participation from the Venture Reality Fund and SOMA Capital.
“We are thrilled to partner with Doorstead to pioneer a new model of risk-free property management. Doorstead is already surpassing expectations of property managers by delivering higher rental income with unparalleled quality of service, and it’s just getting started,” said Gautam Gupta, partner at M13.
“We are very excited about investing in and working with Doorstead because we believe the opportunity to apply technology to the currently inefficient property management industry is enormous. Doorstead has an excellent team who understands the market and has built a product property owners find to be differentiated and valuable,” said Lara Druyan, partner at Silicon Valley Data Capital.
PROPERTY MANAGEMENT IS BROKEN AND FULL OF MISALIGNED INCENTIVES
Property management is an industry bogged down by inefficient processes and misaligned incentives that create a poor service experience for owners (NPS 8). Today, technology is decoupled from operational processes, such as scheduling showings, back-and-forth communication and managing repairs. Additionally, property managers overpromise on rental prices to get people to sign and have no consequence for slow tenant placement, while owners have months of vacancy and lost income. These inefficiencies lead property-management incumbents (NPS 8) to have a 43-day vacancy average, much of which is unnecessary. This leads to an $86 billion annual economic waste in the U.S. alone.
INTRODUCING DOORSTEAD, A NEW CLASS OF PROPERTY MANAGEMENT
Doorstead is pioneering a new class of risk-free property management (i.e. iRenting) that allows landlords to get a rental offer within hours. This upfront guarantee regardless of occupancy (e.g.: $5,500/mo starting in 28 days) is disrupting the property management industry with big data and technology operations. The company uses modern data science to efficiently model risk alongside operations technology that enables consistent high-quality service at scale. Doorstead eliminates vacancy risk, makes the market more efficient and gives property owners true peace of mind.
“Today, we are seeing the emergence of operations-technology companies like Uber, DoorDash and Opendoor with both operations and technology crafted into their DNA. At Doorstead, we believe that software cannot exist without the human component, and the operations cannot exist without software orchestrating the process,” said Ryan Waliany, CEO and co-founder.
To date, Doorstead has met 100% of its guarantees, reduced vacancies by as much as 76% and helped owners earn up to 9% more in annual rental income. Doorstead currently serves the San Francisco Bay Area, with expansion plans for Sacramento and Los Angeles.
Doorstead’s mission is to give property owners and tenants true peace of mind. Doorstead provides risk-free property management with guaranteed rental income, regardless of occupancy (e.g. $5,500/mo starting in 28 days).
The founders, Ryan Waliany, a technology-operations expert from Uber, and Jennifer Bronzo, a tech entrepreneur who grew up managing properties for her family’s construction company, started Doorstead to create the future of housing. The founding team – all alumni of UC Berkeley – has built technology-operations products at Uber, engineered scalable systems at Doordash and Dropbox, and built forecasting models at Goldman Sachs.
Find out more at doorstead.com.