- NestEgg — a company that is building the future of residential rental property management — announced it has raised $7 million in Series A funding
NestEgg — a company that is building the future of residential rental property management — announced it has raised $7 million in Series A funding from several fintech and proptech investors. Hyde Park Venture Partners led the funding round with participation from Bonfire Ventures, BAM Ventures, Financial Venture Studios, Dreamit Ventures, and Hyde Park Angels.
How does NestEgg work? NestEgg is an all-in-one platform that makes on-demand residential property management a reality for the 12 million+ small independent landlords in the US. These independent landlords are often doctors, nurses, and young entrepreneurs who are investing in real estate as a long-term investment strategy. Rather than paying a large chunk of their cash flow to a traditional property manager or doing everything themselves at the expense of their time, small independent landlords are tapping into the NestEgg platform to save time and boost cash flow. On average, NestEgg saves landlords about 90% of their time spent on their properties and increases their monthly cash flow by 10-30%.
This round of funding will help launch NestEgg’s first-of-its-kind payment product for landlords called NestEgg Pay. And for any maintenance or leasing expenses that a landlord incurs on their platform, landlords can now choose NestEgg Pay during checkout to pay off the expense interest-free over 2, 4, or 6 monthly installments.
For example, a $600 plumbing job can now be paid in six $100 installments seamlessly deducted from their rental income. And NestEgg Pay allows landlords to worry less about cash flow crises and pay on a schedule that best fits their financial needs.
By operating on a subscription-based model, NestEgg assures that landlords will receive rent by the first of the month, have the option to resolve maintenance issues using NestEgg Pros or their own contractors, and reduce the administrative burden small independent landlords face. And the total number of landlords has grown by 300% in the past 6 months.
This recent round of funding will also go towards the expansion of the team as the company is aiming to hire up to 40 new employees over 2021. This includes building teams focused on the landlords and resident experience, rent collection, NestEgg Pay, maintenance marketplace, research & development, marketing, and finance.
KEY QUOTES:
“With more financial pressure on landlords and tenants as a result of the current economic climate, it’s more important than ever for landlords to have access to tools that deliver strong cash flows. As small independent landlords ourselves, my co-founders and I have built a platform that makes the income reliable and the management easy.”
— Eachan Fletcher, CEO & co-founder of NestEgg
“The founders of NestEgg have a compelling vision to make owning residential rental property as easy as owning stock and bonds. This team spent years building tech products at Expedia, and are bringing the same creativity to the DIY landlord market. We are excited to be a part of NestEgg’s journey in bringing financial security and freedom to smaller, independent landlords across the nation.”
— Ira Weiss, partner at Hyde Park Venture Partners, the lead investor in NestEgg’s Series A
