New funding: Doorstead, a San Francisco property management startup founded by former Uber employees, has raised a $12.5 million Series A funding round led by Seattle-based Madrona Venture Group.
Company history : The 2-year-old startup targets 15 million small real estate investors who own single-family units and need help renting their space. It provides data on optimal rental prices and offers a guaranteed rental offer in less than 24 hours.
Doorstead also manages the property, including rental preparation, tenant screening and rent negotiation. It manages over 300 properties in the Bay Area and recently launched in Los Angeles and Orange County. The startup has over $10 million in rent under management.
Revenue model: Doorstead follows the industry standard of approximately 8% of monthly rent as a management fee and 50% of a month’s rent when a tenant is placed. It guarantees payment to the owner upfront – if the company misses the estimates, they cover the difference, and if they rent a higher rate, the extra money goes to the owner.
Leadership: Uber veterans Ryan Waliany and Jennifer Bronzo launched Doorstead in 2019. Waliany worked in product at Uber and previously launched Kitchenbowl, a social recipe app from Seattle sold to ABC Cooking in 2017. He also co-founded HotSwap, Bullet Media and Idealix. Bronzo co-founded gaming startup Thumper Studios and hardware company ZowPow, and also served as a property manager for Maywood Construction.
Funding: The 24-person company has raised $17.3 million to date. Other backers include executives from OpenDoor, Uber and Docusign.
“As we have seen in the market for buying and selling residential real estate with our previous investment in Redfin, when you remove friction and apply data and technology to the transaction, the buyer and the seller (or in this case landlord and tenant) wins,” Madrona’s Scott Jacobson and Elisa La Cava wrote in a blog post. “Doorstead has the winning approach for the market and the team to build what we believe will become a household brand.”