New York, USA-based provider of a novel credit-based payment system for rental deposits, Standby Deposits raised USD 5.3 million in seed financing. The round took place on April 19, 2023. Brunnur Ventures and Stodir hf led the financing for the company.
Purpose of financing for Standby Deposits
With the latest capital injection, the company seeks to fuel its growth. It also has plans to enhance its technology. Besides, Standby Deposits seeks to explore more partnerships with property management companies as well as landlords.
The company is on a mission to become the premier choice for rental deposit alternatives, delivering unmatched support for both tenants and landlords. Meanwhile, it looks to cut costs significantly compared to conventional options.
Standby Deposits has a unique credit-based payment system where renters pay a minimal monthly fee instead of a large upfront deposit. Standby Deposits is all set for a successful Q2 launch, targeting millions of renters across the United States.
What the company’s official has to say
Egill Agustsson, Co-founder and CEO of Standby Deposits said, “We are delighted to have Brunnur Ventures and Stodir on board as we revolutionize the rental landscape with our innovative payment solution. This funding enables us to scale our operations, broaden our reach, and offer a much-needed, cost-effective alternative to millions of renters facing financial hurdles in securing housing.”
What the investors have to add
Arni Blondal, Managing Partner at Brunnur Ventures, further added, “We’re proud to invest in Standby Deposits, which tackles a major capital inefficiency in rental households with a robust, integrated solution that offers simplified and cheaper housing access for renters. We are strongly supportive of the positive social mission that this also serves at a time of high inflation.”
The investment markets the investor’s commitment towards Standby Deposits’ mission to empower tenants with a more flexible, affordable, and accessible solution.
About the company
In 2021, Founders Egill Almar Agustsson and Elvar Thormar launched the company. The USA-based aims to disrupt the rental market with a novel credit-based payment system for rental deposits inspired by the ease and adaptability of credit card payments.
It provides a more accessible and cost-effective substitute as compared to traditional security deposits. Standby Deposits strives to empower renters as well as foster financial inclusivity. The company is trailblazing its way to revolutionize the rental industry for the benefit of both tenants and landlords. Standby Deposits seeks to achieve its mission by focusing on user experience, technology, as well as scalability.
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