A startup that makes it easier to pay rent online just secured $5 million in first round funding.
Over 6,000 landlords and renters in over 500 cities across the U.S. use the Cozy website. Landlords pay to use the service and have the option for a 60-day free trial. It’s free for renters.
On the website, landlords can store rental applications, collect rent, and screen potential tenants. Tenants can pay rent and build a profile that is fully integrated with LinkedIn. That way, potential roommates can view their professional history.
Chief executive Gino Zahnd said that the company has continued to grow, with more people opting to rent homes rather than buy them. Single family homes are the fastest growing rental category on Cozy.
Above: Cozy’s landlord admin screen
Image Credit: Cozy
The company competes with a number of other e-rental sites, including SparkRental and PayClix. Related services, like RentShare, make it easier for roommates to split rent.
With the funding, the company plans to invest in developing a suite of mobile apps and building out the product. The company will also be hiring — the current team of 13 divides time between San Francisco and Portland.
The round was led by East Coast firm General Catalyst Partners, with participation from Social+Capital Partnership. Neil Sequeira, a managing director at General Catalyst, has joined the company’s board.