Frontdesk is a short-term rental label based in Wisconsin that operates in more than two dozen markets across the USA to modify the face of hospitality and real estate. The startup has closed a fundraise of US$ 7 million in a venture funding round led by Stormbreaker Ventures on August 6 2021. With this venture, the company stands at a total valuation of US$ 18 million.
Purpose of Investment
Frontdesk will use the fund to advance its dynamic growth plan, expand its portfolio before 2021 and turn profitable in 2022.
The company will stimulate Frontdesk Flex, its work-in-operation software business, which offers professional short-term rental property administrators a series of white-labelled tech solutions, dynamic pricing algorithm, property management system, direct booking engine, access control, task management, to name a few.
What the CEO has to say
Co-founder and CEO at Frontdesk, Kyle Weatherly, says, “When Stormbreaker approached us this spring, we had the cash flow to grow in line with our lofty expectations, but this preempted venture round gives us the ability to scale exponentially. Given how strong the demand has been for our tech-enabled STR platform, we saw more opportunity to grow than anticipated.”
“Ultimately, we decided to ‘fuel the fire’ and emerge from the pandemic as leaders in the booming short-term rental space. The influx of capital will drive further growth to both our management and our technology businesses, fulfilling the demand that is in our lap with short-term stays now exceeding pre-pandemic numbers.”
What the Investors have to say
Stormbreaker Ventures’ managing partner, Mia, comments on the latest investment, “Not only has Frontdesk succeeded in achieving rapid scale, but they have done so in a way that is five to ten times more capital-efficient than their peers, showing vastly superior underlying unit economics.”
“Sonder, for example, required 35x more capital to achieve only 8x Frontdesk’s scale; meanwhile, other brands have raised $50 million-plus with less scale than Frontdesk. As a result, we’re confident in the company’s ability to fundamentally change the way consumers live, work and travel in a post-pandemic era, with their capital-light and tech-forward model.”
About Frontdesk
Founded in 2017 by Jesse DePinto and Kyle Weatherly, Frontdesk offers securely-run short-term and long-term stays at apartments and flats in cities, victualing to business and leisure travellers. Frontdesk links the world between short-term and long-term stays in residential apartment centres with custom-built technology, a value-driven ecosystem, and reliable execution to mount a stable and uniform experience for its customers. It operates with more than 250 employees and hosts more than 15,000 travellers every month in 160 locations across 35 markets. For more information, visit https://stayfrontdesk.com/.
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