US: Milwaukee-based short-term rental property management startup Frontdesk, which seeks to provide flexible stays for the ‘modern traveller’, has announced the closing of its $13 million Series B funding round.
The round was led by Stormbreaker Ventures with support from JetBlue Technology Ventures, Veritas Innovations, Motivate Venture Capital, and several strategic investors.
It brings Frontdesk to $22 million in total equity financing to date, after securing $7 million in a venture capital round last August.
Founded in 2017, Frontdesk manages one of the largest collections of short-term rental units in the United States. The startup now operates in over 30 US markets with more than 1000 units across 150+ buildings.
Frontdesk helps real estate owners to maximise the potential of their multifamily assets and provides modern spaces for today’s travellers. The company’s proprietary software powers its “efficient and scalable” model, allowing Frontdesk to better serve guests and automate and scale internal operations, as it seeks to redefine hospitality for a new generation of travellers and property owners.
Mark Freed, Frontdesk board member and partner at Stormbreaker Ventures, said: “Stormbreaker has been a long-time believer in Frontdesk’s capital-efficient approach to transforming the way we live, work, and explore new communities. Supported by strong leadership and best-in-class technology, Frontdesk has built a sustainable, scalable business, and we are thrilled to continue being a part of their growth.”
Jim Lockheed, partner at JetBlue Technology Ventures, said: “At JetBlue Technology Ventures, we are always on the lookout for companies that are building differently from their peers. Frontdesk’s vision to redefine hospitality for the modern traveller – grounded in strong business fundamentals – is exactly the type of business we believe will be a great partner for JetBlue Technology Ventures and our existing portfolio of early-stage startups improving the future of travel and hospitality.”
Jesse DePinto, the newly-announced CEO of Frontdesk, said: “As the world becomes more digital and more flexible, the need for our product has never been greater. We are grateful to be joined by partners who support our vision to power the future of dynamic living and meet the contemporary needs of living, working, and travelling.
“As we look towards the future, we are now even more excited about the generational opportunity ahead, and Frontdesk’s leadership position within our category,” he added.
The company is continuing to acquire new properties to add to its portfolio and plans to use the capital to expand into existing markets and buildings. In the last 12 months alone, Frontdesk has increased its portfolio by 42 per cent, including taking over the management of 33 units left vacant by now-defunct property management company WanderJaunt in Tempe and Phoenix in Arizona and Austin in Texas.
Despite the pandemic, Frontdesk has so far served more than 400,000 guests and earned an average satisfaction rating of 4.7 out of 5.0, although the startup underwent a “restructuring” earlier this year which saw around 3.5 per cent of its workforce laid off.