Summer
[Credit: Summer]

Summer raises $68m in Series A funding and debt facility

US: Real estate proptech startup Summer has announced that it has completed a $68 million fundraise, including an $18 million Series A funding round and a secured debt facility of up to $50 million. 

The funding round was led by QED Investors and Viola FinTech, with participation from Lightspeed, 1Sharpe Capital Ventures, Connecticut Innovations, Alumni Ventures, Elizabeth Street Ventures, Merrimac Corp, Gaingels, firstminute capital and Not Boring. Setpoint Capital partnered with Summer on the $50 million debt facility.

The proptech startup, which seeks to streamline second home ownership, closed a $13.4 million seed funding round last June shortly after being launched by CEO Paul Kromidas and COO Woods Buckley. Kromidas and Buckley both previously worked at Airbnb, with the former serving as a product and strategy lead at the home-sharing firm, where he helped to create its Luxe product.

Summer wants to fill a gap in the market by “changing the way people buy and use second homes”, enabling prospective homeowners to try out homes before they buy and guaranteeing income after purchasing to reduce the costs of ownership and earn equity faster.

Paul Kromidas, founder and CEO of Summer, said: “With this fundraise, we’ll be expanding nationally, enabling more customers than ever before to make a purchase that makes sense for them – a smart investment that they love to spend time in.”

In addition, the platform offers a range of services, particularly to target younger demographics with the ability to buy a second property and rent it out on online travel agencies [OTAs] / short-term rental platforms when they are away. These services include:

  • “Gradual ownership”

The “try before you buy” option ensures that members [paying monthly membership fees] can choose a property from the Summer portfolio or send the Summer team listings of any on-the-market homes that could be good fits for its criteria. Summer handles everything from submitting offers to managing paperwork, performing home inspections and due diligence, interior design and property furnishing, or manage the property and handle reservations for guests.

Members who opt for the Summer gradual ownership can earn booking credits, have their own dedicated concierge, and build home equity over time.

  • “Immediate ownership”

Members who opt for the immediate ownership of a Summer property must first submit their offer and wait for it to be accepted. If it is approved, Summer manages the paperwork, home design and construction, while an in-house property manager is on offer to line up reservations.

  • “Hands off” property management

Homeowners who have already completed the purchase of a second home can hand over responsibility to Summer to manage their property, list on short-term rental platforms, carry out social media marketing, message guests and respond to reviews.

Separately, Summer says that it uses “data and analytics” to help members predict their rental revenue and find their ideal property.

To date, the startup has raised around $30 million in total equity with the latest fundraise.

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