Exclusive: TheGuarantors raises $50M to help renters get approved
TheGuarantors, a startup providing insurance and financing options for the rental market, raised $50 million in Series C funding led by Portage Ventures.
- Kensington Capital Partners, Arch Capital Group, Roosh Ventures, and Alven also participated.
Why it matters: The fundraising follows a major macro-economic trend: In a tight rental market, TheGuarantors is helping people lock down a unit who may otherwise be turned down.
How it works: TheGuarantors vets applicants and helps them secure rentals by providing a lease guarantee to landlords that ensures they will get paid for any lost rent or damages.
- It also offers renters the ability to replace their security deposit with a small monthly fee that’s paid over time instead of upfront at the time a lease is signed.
- In both cases, TheGuarantors underwrites the financing and partners with insurance carriers to secure the funds in case of default.
Between the lines: TheGuarantors CEO Julien Bonneville founded the company after facing the challenge of securing an apartment as a foreign student with a thin credit file.
- “These guarantees can be a way for prospective and qualified renters to rent the place they want. In the case of default, we are paying the rent on their behalf to the landlord,” Bonneville tells Axios.
By the numbers: Since its start in 2015, TheGuarantors has partnered with landlords that represent 3 million units in the U.S. The company has secured $1.5 billion in rent and security deposits.
What’s next: TheGuarantors recently formed its own licensed insurance company, enabling it to take on some of the risk — and reward — of its underwriting.
- The company also plans to grow its engineering team and hire across product, sales, and marketing through the rest of the year.