Insurance startup TheGuarantors has secured $15 million in Series B funding.
Founded in 2016, the company works to secure leases and provide insurance to New York-based renters who would not otherwise qualify for them. As landlords in cities with expensive real estate markets often turn down those who do not have high incomes and excellent credit scores, a number of insurtech companies have been trying fill this gap by acting as guarantors for a fee.
TheGuarantors charges U.S. residents 4.75 percent to 7.5 percent of annual rent while international tenants will need to pay 7 percent to 10 percent of annual rent upfront.
The latest round, which brings the total money raised by the startup to $27 million, has been led by the venture capital firm Global Founders Capital. Other investors include White Star Capital, Silvertech Ventures Alven Capital, and Partech.
The money will, according to the company, go toward expanding its insurance platform to cities outside New York and to launch its product in the commercial real estate market. The program, titled Securiti, lets office tenants pay an annual fee rather than a security deposit.
“We are excited to reach this important funding milestone,” said founder and CEO Julien Bonneville in a press release. “Given our strong success in New York City, we have worked over the past year to help landlords in competitive real estate markets like Boston, DC, Chicago, LA, and Dallas increase NOI and reduce all tenant risks.”
The policies will be backed in partnership with Chubb, a publicly traded property and casualty insurer. According to TheGuarantors, the company has secured more than $200 million in leases since 2016.
“With their residential offerings, TheGuarantors have shown ability to create innovative products that have a strong market fit,” said Hugues de Braucourt of Global Founders Capital in a prepared statement. “We’re trusting them to execute based on their past success and are thrilled to continue our support.”
