The ‘PayPal of renting’ tech firm Goodlord has received millions more in funding from top Silicon Valley investors reinforcing that London really is the PropTech capital of the world!
Goodlord is a U.K. startup that has built a platform to handle transactions and ‘paperwork’ normally associated with renting a home and has now raised a healthy £7.2 million in Series A funding.
Less than a year ago, the emerging tech firm received £2 million from investors and now the rental disruptor has landed an additional £7.2 million from new and existing investors. Big hitting investors include Global Founders Capital Fund and Local Globe; a smart VC who have had previous success with Zoopla Property Group, TransferWise and CityMapper.
The proptech start-up was co-founded in London by Richard White, a former Foxtons estate agent, and brothers Ted and Philip Mundy.
After White’s first-hand experience as an agent, he wanted to design a more efficient, tech savvy method to rent properties with the ultimate aim of a smoother rental process for landlord and tenant.
Goodlord is aiming to revolutionise the way tenants, landlords and estate agents work together. The firm makes renting a new property easier by transforming tenancy agreements from the printed page to digital as well as handling deposits, fees and references online. This information is then available for the tenant to use in their next move. The owners claim it can save estate agents up to 75 per cent of administration costs for lettings while reducing the moving time for renters from a week down to 48 hours.
“Generation Rent has been getting a raw deal up to now” said co-founder and chief executive Richard White.
“I see us as building a PayPal for the property market…more and more people will be renting their homes for longer. They want to see quick, professional and efficient service from both agents and landlords. Goodlord can provide this in a way that is familiar to a generation that expects to complete purchases, order take-aways and hail a taxi using their phone in seconds.”
The investors cash injection will be used to hire more developers to strengthen the software and the firm estimates they’ll have hired 117 more people by the summer, up from 11 last year. Venture Capitalists are in love with the potential of the proptech firm, praising it as essential for modern living.
“Goodlord is using technology to build transparency and ease of use for one of the most important moments in a consumer life: choosing a home to live in” said Meyer Malka, partner at Ribbit Capital. Ribbit Capital is also supporting other proptech startups like digital mortgage brokers Habito, who recently received £5.5million from the fund.
This investment suggests the startup has a promising future and investors have fully bought into its potential.
DMZ agrees that White and his co-founders have found a great solution to aid the rental process. The majority of letting agents are already flexible to the needs of remotely based landlords and tenants, using email to arrange appointments and confirm agreements. Goodlord are essentially formalising this process – providing a useable platform that can replace the ugly PDF attachment of a scanned agreement with a standard process that can be used by everyone with a smartphone.
Some DMZ‘ers may think it’s unnecessary to have what some might see as ‘an agent within an agent’, however you do not need to look far to see how powerful connecting platforms can be – Deliveroo, Taskrabbit and Laundrapp are a runaway success and we predict Goodlord (and other competitors) will increasingly used by millennial renters in the capital.