US: Topkey, a financial operating system for short-term rental property managers, has announced that it has raised $5.2 million in seed round funding.
The seed round was led by venture capital firm Felicis, with participation from Andreessen Horowitz, Y Combinator and other investors including Liquid 2 Ventures, Assurant Ventures and Derive Ventures.
It takes the startup’s total funding to date to just short of $7 million, having been founded less than three years ago.
After initially starting out as a marketplace to connect owners and property managers, Topkey pivoted its model in mid-2021 to become a financial operation system. The platform is currently in a beta phase, offering everything from billings and payments to expense management with an aim to simplify the process for property managers when it comes to paying for goods and services and making the overall workflow less fragmented in terms of payments, banking, business intelligence and invoicing.
Topkey co-founder and CEO, Jonathan Sukhia, told Axios: “It’s a very messy process and errors are rife. Property managers run at 10 to 15 per cent margin. They’re small businesses, often fast growing so there’s a lot of opportunity, but it’s not a business where they can afford to flush away thousands a month.”
Topkey promises to:
- Automatically categorise expenses by property to save “thousands of dollars” on bookkeeping
- Issue cards, set custom limits, tag receipts effortlessly, and earn 1.5 per cent cashback
- Stop manual data entry and seamlessly import transactions details to an accounting software
Moving forward, Topkey is seeking to integrate with more property management systems in the vacation rental space, as well as to potentially expand further into other hospitality verticals.