A San Francisco startup that guarantees rental income for small property owners has raised $21 million in a Series B round.
Doorstead announced the new round, led by Avanta Ventures, on Friday. MetaProp, M13 and Madrona also participated in the round. This new funding brings the company's total to $37 million.
Founded in 2019 by CEO Ryan Waliany, COO Jennifer Bronzo and CTO Philip Lee, Doorstead was selected as one of Bay Area Inno's Startups to Watch a year ago.
Last year, Doorstead told Bay Area Inno that it was on track to manage $2 billion worth of rental properties by 2025. The company says it's now halfway there with $1 billion worth of properties under its management.
Within its portfolio, the company says it has made over 30,000 guaranteed rental offers across seven markets in California and the Pacific Northwest.
The company charges landlords an 8% management fee as well as half of a new tenant's first month of rent. If Doorstead fails to fill a vacancy at the agreed-to guaranteed rate, it eats into the company's fees.
That means if a property sits vacant, it would cover a full month's cost of rent. But if a unit is rented out for a lower price, it only covers the difference between the actual rental price and the guaranteed price.
Doorstead also announced on Friday that it had acquired the Massachusetts-based assets of another rental property management startup, Boston-based Knox Financial, which allows it to immediately expand to the East Coast. Terms of the deal were not disclosed.
Knox Financial "wound down operations" at the end of 2022, according to TechCrunch. And it had raised just over $65 million and was valued at $40 million after raising a $10 million Series A in 2021, according to PitchBook.
