- Property operations technology company Doorstead announced it raised $3.3 million in funding co-led by M13 and Silicon Valley Data Capital
Doorstead — a property operations technology company known as the “Opendoor for Rentals” —- announced it raised $3.3 million in funding. This round of funding was co-led by M13 and Silicon Valley Data Capital with participation from the Venture Reality Fund and SOMA Capital.
How does Doorstead work? Doorstead is leveraging big data and operations technology to disrupt the property management industry — which has an opportunity of more than $50 billion. And Doorstead is pioneering a new class of risk-free property management (iRenting) by providing landlords guaranteed rental income, regardless of occupancy (example: $5,500/mo starting in 28 days).
Property management is considered an industry that is bogged down by inefficient processes and misaligned incentives that create poor service experience for owners (NPS 8). And today, technology is decoupled from operational processes like scheduling showings, back-and-forth communication, and managing repairs.
Plus property managers overpromise on rental prices to get people to sign and have no consequence for slow tenant placement while owners have months of vacancy and lost income. And these inefficiencies lead property-management incumbents (NPS 8) to have an unnecessary 43-day vacancy average. This leads to an $86 billion annual economic waste in the U.S. alone.
Doorstead was founded by CEO Ryan Waliany and COO Jennifer (Lu) Bronzo. Bronzo is a tech entrepreneur who grew up managing properties for her family’s construction company. And Ryan Waliany previously worked in the Product division at Uber and launched Kitchenbowl (acquired by ABC Cooking Studio).
“Today, we are seeing the emergence of operations-technology companies like Uber, DoorDash, and Opendoor with both operations and technology crafted into their DNA. At Doorstead, we believe that software cannot exist without the human component, and the operations cannot exist without software orchestrating the process,” said Ryan Waliany.
Doorstead uses modern data science to efficiently model risk alongside operations technology that enables consistent high-quality service at scale. And Doorstead eliminates vacancy risk, makes the market more efficient and gives property owners true peace of mind.
“We are thrilled to partner with Doorstead to pioneer a new model of risk-free property management. Doorstead is already surpassing expectations of property managers by delivering higher rental income with unparalleled quality of service, and it’s just getting started,” added Gautam Gupta, partner at M13.
So far, Doorstead has met 100% of its guarantees, reduced vacancies by as much as 76% and helped owners earn up to 9% more in annual rental income. Currently, Doorstead serves the San Francisco Bay Area with expansion plans for Sacramento and Los Angeles.
“We are very excited about investing in and working with Doorstead because we believe the opportunity to apply technology to the currently inefficient property management industry is enormous. Doorstead has an excellent team who understands the market and has built a product property owners find to be differentiated and valuable,” said Lara Druyan, partner at Silicon Valley Data Capital.