Real Estate Tech Company Blueground Raises $50 Million In Funding

By Noah Long ● Oct 29, 2019
  • Real estate technology company Blueground announced it raised $50 million in funding co-led by WestCap Investment Partners and Prime Ventures

Blueground, a real estate technology company, announced recently that it raised $50 million in funding. This round of funding will be used for supporting global expansion while doubling down on strengthening its technology, design, product, and guest experience.

This round of funding was co-led by WestCap Investment Partners and Prime Ventures. And WestCap’s founding partner Laurence A. Tosi is an experienced investor and operator — who served as the long-time CFO of private equity firm Blackstone and as the CFO of Airbnb.

Blueground views a world where people can feel at home wherever they choose to live. And the company creates that experience through beautifully designed tech-powered apartments for stays that range from one month to a year or longer.

“The idea of one’s home being a fixed, long-term commitment is changing as more people around the world are choosing to live in multiple cities for work or other reasons. Our guests get unprecedented convenience and flexibility with the ability to just show up and start living on day one in beautifully designed, tech-powered apartments,” said Alex Chatzieleftheriou, CEO and co-founder of Blueground. “For property owners, partnering with Blueground is an ideal solution. We offer a steady yield, 100% guaranteed occupancy and manage all the work on their behalf to enable a seamless guest experience. We are excited to expand our relationships with leading developers and property managers across the world.”

With this funding round, Blueground will increase resources to further develop its proprietary technology, product design, guest experience, and further expand its presence in both the United States and Europe. And this expansion will begin with the launch of London, Paris, and Seattle by the year of this year. Plus it will position Blueground to reach its 2023 target of serving guests in over 50 cities globally.

In conjunction with this funding round, WestCap partner Charlie Young is joining the board of directors.

“WestCap is pleased to partner with Blueground as it continues to execute on its proven strategy of disciplined growth,” added Young. “Blueground’s ability to pair an outstanding guest experience with best-in-class capital efficiency will serve to increasingly distinguish the disruptive business in this fast-paced ecosystem.” 

So far, the company built a portfolio of over 2,800 apartments in nine cities around the world. And with this Series B round of funding, Blueground has now raised a total of $78 million in equity funding. The previous financing included investments from funds like VentureFriends, Endeavor Catalyst, Jabbar Internet Group, and AlleyCorp.

Earlier this year, Blueground named AlleyCorp CEO Kevin Ryan to its Board of Directors. And this year was a record for Blueground as the company achieved 3X YoY revenue growth and surpassed 1 million nights spent by guests.

“Through leveraging the power of technology, Blueground has developed a unique value proposition and approach to this emerging space in the market,” explained Nick Kalliagkopoulos of Prime Ventures. “We are impressed by what the team has achieved to date, and look forward to helping lead this new chapter of the real estate industry.” 

Kalliagkopoulos is also joining Blueground’s Board of Directors.

Blueground now runs 2,800 apartments and it has 400 team members in nine cities, including New York, Los Angeles, San Francisco, Boston, Chicago, Washington D.C., Dubai, Istanbul, and Athens. And Blueground plans to have a presence in 50 cities around the world and a portfolio of more than 50,000 apartments by 2023.