AvantStay's move into brokerage services sets it apart from most of its peers. But as Zillow's experience of flipping houses and getting burned highlights, real estate can be a very risky sector.
AvantStay, a property manager that engages in real estate investor-buyer matchmaking, has raised $160 million in new funding.
Founded in 2017 and based in Los Angeles, AvantStay manages properties and redecorates them with the aim of charging premium rates for owners. The company opened a brokerage arm earlier this year to match investors and real estate owners, saying it uses its data to pinpoint opportunities. At the same time, AvantStay is trying to build a consumer brand.
Tarsadia Investments and 3L Capital co-led the Series B round. Joining existing investors Bullpen Capital and Convivialite, were new funders Capital One Ventures, Saluda Grade, Greenhawk, Stephen Pagliuca, Fred Tuomi, Jerry Coleman, Plus Capital, and celebrities Paul George, and Shawn Mendes.
AvantStay said it previously raised $20 million.
In its announcement, AvantStay said the funding would bolster the “company’s continued growth, including expansion into new markets, advanced technology offerings, elevated customer experience, and the national launch of its brokerage services.”
AvantStay said it manages more than 1,000 properties in more than 100 cities and has 400 employees. That property count is small compared with 35,000 for Vacasa, which just went public in a blank check merger earlier this month and competes in some ways with AvantStay.
Vacasa, which had a $4.5 billion private valuation, has seen its share price plummet since beginning trading a week ago. Its shares opened at $10.00 and were trading Wednesday afternoon at $7.05.
AvantStay founder and CEO Sean Breuner predicted in a September interview that its brokerage arm would do $500 million in transactions in 2022, and aims to have 2,500 properties and $5 billion in assets under management next year.
Breuner said Wednesday: “We’re bringing the hotel into the home, elevating the short-term rental experience and enabling all of the value-added services you’d expect via phone now delivered on arrival and delivered within your mobile device.”
TechCrunch was the first to report the AvantStay funding news.
Breuner said Wednesday: “We’re bringing the hotel int0 the home, elevating the short-term rental experience and enabling all of the value-added services you’d expect via phone now delivered on arrival and within your mobile device.”
Photo credit: AvantStay picked up $160 million in venture funding. Pictured AvantStay's expansion to Cabo San Lucas arrives as more hospitality competitors see opportunity in high-end vacation home rentals. AvantStay