Awning, the firm that streamlines the process for investors to spend in single-family rental houses, raised $9.3M in a seed round.
Global Founders Capital headed the deal. The Sideinc's co-founders, SafeGraph's creator, Lightspeed Ventures' Associate, Scale's founder, etc., were among the key angel investors who joined in the fundraising.
After serving as a senior group member at FlightCar and leading products and tech at Eaze, CEO Shri Ganeshram partnered with Danaus Chang to establish Awning two years ago. Ganeshram had quit school after receiving early entry to MIT before being an entrepreneur.
The portal went live in closed beta previously this year and is now available to funders in the United States and Canada. Consumers can find the ads in 3 states: California, Texas, plus Florida. In the following months, the additional capital intends to expand its portfolio by adding new markets. Awning uses AI and data analytics to emerge as the top countrywide single-family rental home for owners, with estimated investment rewards, according to the company. Customers are matched with consultants to help them figure out their investing strategy.
Awning's realtors "qualitatively" evaluate each house.
These professionals can also assist investors in obtaining financing and unite purchasers with "verified" estate managers in managing rental and day-to-day servicing.
It's a related but distinct concept to another company, Mynd, which similarly promises to make life simpler for consumers to acquire and maintain single-family rental residences. Awning, apart from Mynd, will not manage homes for investors. It's also distinct in that it focuses on individual users, whereas Mynd caters to corporations.
Awning's "consultants," who are the licensed realtors, select residences that they assume are the right match for a shareholder, relying on their finances and objectives.
They then use the firm's specialized machine learning approach to calculate rent, fees, appreciation, and prospective return on investment on every listing in the sector.
After a consultant discovers a prospective investor's investment goals, the platform consumes all postings from numerous MLSes in multiple markets. It instantly analyzes each one for yields and liabilities. When a buyer is ready to take the next step, they can use their platform to connect with a counsel and make bids, Ganeshram explained. Investing in single-family leases has traditionally been a "difficult" business, according to Ganeshram. He continued stating that it seemed to appear trapped in the last few years.
The business argues that Awning's "solid" human and technological aspects make it a quicker and efficient encounter.
The site has so far assisted in the sale of 5 million dollars worth of property investment. It charges a fee to the seller, exactly like other property brokerage firms. The charge is usually included in the listing and collected at closure, with 3 percent accruing to the purchaser and seller's corresponding agents.
Awning expects to start in Florida as well as Alabama soon this year.
It will do the same in other cities over the coming period. Expansion can be complex since each state requires the business to establish as a licensed broker.
Global Founders' Kendrick Kho stated he's funded numerous property investment businesses in the previous five years and believes Awning is unique. It is because it caters to individual purchasers rather than corporations.
He particularly admires the firm's strategy of
"getting buyers acquainted with their possible investments as genuine physical residences rather than numbers on a spreadsheet.”