A tech startup for the rental market – already one of Central Ohio's fastest-growing private companies by revenue – has raised $44 million in private equity to accelerate.
Foxen last year more than tripled the number of multifamily and student housing units it monitors for compliance with requirements for renter's insurance, according to a release. The company said the funding will help target a market of 24 million U.S. rental units.
Jay Harkrider, Foxen managing partner and co-founder, said in a release that the company is striving to add products to achieve a broader "vision of improving financial wellness through real estate.”
Growth equity firm Summit Partners, of Silicon Valley, led the Series A, with participation from New York City-based Level Equity.
Jobs are expected to double, spanning many departments, the release said. Today Foxen has 43 employees, up from 30 at the beginning of the year.
Foxen spun out in 2018 from Columbus-based Coastal Ridge Real Estate, an owner-operator of multifamily and student housing, and was reincorporated as Foxen Holdings Inc. in Delaware last year. Both have offices in 80 on the Commons downtown.
Revenue was $2.9 million in 2020, up from $860,000 its launch year, which made it No. 11 among the region's fastest growing companies by three-year revenue growth in Columbus Business First's Fast 50 awards last fall, the first year the startup was eligible.
Harkrider also is one of three managing partners and co-founders of Coastal Ridge, which has grown to $3.7 billion in properties under management.
“As a property owner, I learned firsthand that requiring renter's insurance is ineffective without the ability to manage compliance," Harkrider said in the release.
Foxen integrates with the IT platforms that most property management companies use to make it easier to monitor compliance and for renters to upload proof of insurance. If the policy lapses, Foxen automatically enrolls the tenant in a waiver program that limits what they owe the landlord if damage occurs, with variable coverage for their personal possessions.
The first of Foxen's expanded financial products debuted this year: Rentistry, a rent collection tool that simultaneously helps tenants improve their credit scores.
The startup also has an office in Santa Barbara, California.
Company officials were not immediately available for comment.
Colin Mistele, managing director at Summit Partners, joined the Foxen board with the round.
"Foxen’s approach has resonated with customers, helping the team to bootstrap the business as it has grown to serve property managers on a national scale," Mistele said in the release. "We believe this deeply experienced team has a significant opportunity to build on that momentum."
"We believe there is a need for smarter fintech solutions in the multifamily real estate industry,” Ben Levin, Level Equity co-founder and CEO, said in the release.
