TheGuarantors – a fintech company building smart financial and insurance solutions for renters and landlords – announced it has raised $35 million in growth capital financing from CIBC Innovation Banking. And with the completion of this funding round, TheGuarantors has raised more than $110 million in equity and debt financing, of which $85 million was secured in the last year alone. TheGuarantors’ investors include Portage Ventures, Kensington Capital Partners, and White Star Capital.
Launched in 2015 in New York, TheGuarantors is working on improving renting affordability and access for renters across the U.S. TheGuarantors has protected more than $2 billion in rent and deposits and nearly $1 billion covered in 2022 alone. And the company is experiencing 95% revenue growth year-over-year and boasts a 99% retention rate with real estate owner and operator partners. The company is investing heavily in product, engineering, and growth after raising its series C and it is on track to reach profitability with existing capital.
The Market: The company estimates that 5 million households will struggle to get approved for rental housing each year based on their finances and renters have a collective $65 billion locked away in security deposits. TheGuarantors essentially offers a suite of tools that help renters more affordably overcome these traditional barriers and qualify for the home of their dreams.
“We’re extremely pleased to secure additional capital to power the continuing growth of our business. In the context of economic turbulence and tight capital markets, additional commitment from such a high-quality financing partner is a testament to the health and promise of our business. With our strong unit economics and diligent spend ethos we were already very comfortably capitalized from an equity standpoint, but this debt capital will help us build additional capabilities we will share later this year. We couldn’t be more excited for what’s ahead.”
- Julien Bonneville, CEO of TheGuarantors
“Our team is delighted to be working with TheGuarantors as the company continues on its growth trajectory. We are impressed by the team’s vision and look forward to supporting TheGuarantors on this exciting journey.”
- Eric Laflamme, Managing Director at CIBC Innovation Banking