Standby Deposits – a New York-based start-up – announced it is set to transform the rental market with an innovative and cost-effective alternative to traditional security deposits. The company successfully raised $5.3 million in seed funding, backed by leading investors Brunnur Ventures and Stodir hf – who endorsed Standby Deposits’ mission to empower tenants with a more flexible, affordable, and accessible solution.
Inspired by the way in which credit has revolutionized payments for merchants, Standby Deposits has created a unique credit-based payment system where renters pay a minimal monthly fee instead of a large upfront deposit. And this approach – which is significantly less expensive than current market options – fosters financial inclusivity, affordability, and accessibility to rental housing. Through a pipeline of property managers, Standby Deposits is ready for a successful second-quarter launch, targeting millions of renters across the United States.
The $5.3 million funding round will drive Standby Deposits’ growth, enhance its technology, and forge more partnerships with property management companies and landlords. And the company aspires to become the premier choice for rental deposit alternatives, delivering unmatched support for both tenants and landlords while significantly slashing costs compared to conventional options.
While integrating into existing leasing processes, Standby Deposits’ solution requires no additional staff training or procedural changes for property managers. And it offers the same protection as cash deposits while delivering a more flexible and cost-effective payment method for tenants.
KEY QUOTES:
“We are delighted to have Brunnur Ventures and Stodir on board as we revolutionize the rental landscape with our innovative payment solution. This funding enables us to scale our operations, broaden our reach, and offer a much-needed, cost-effective alternative to millions of renters facing financial hurdles in securing housing.”
— Egill Agustsson, Co-founder and CEO of Standby Deposits
“We’re proud to invest in Standby Deposits, which tackles a major capital inefficiency in rental households with a robust, integrated solution that offers simplified and cheaper housing access for renters. We are strongly supportive of the positive social mission that this also serves at a time of high inflation.”
— Arni Blondal, Managing Partner at Brunnur Ventures
