Denver-based proptech startup plans to expand its guaranteed rent program and brokerage services to 10 markets in the next 24 months
DENVER–(BUSINESS WIRE)–February 17, 2022–
Nomad, the leading marketplace serving small-time rental property owners with guaranteed rent, raised $20 million in funding to finance its vision to unlock economic opportunity for everyone in the long-term rental community. Nomad has ambitious plans to expand the team and geographical footprint to up to 10 new markets in the next 24 months and continue to invest in its technology.
The Series A investment was led by Silicon Valley Bank Capital, with participation from additional existing investors: Kickstart Fund, Peterson Ventures, and Range Ventures. The funding follows just 6 months after the company’s seed round.
Nomad’s guaranteed rent product provides mom-and-pop rental property owners financial certainty and helps them navigate the complexities of being a landlord in the turbulent rental market. With Nomad, the rent is paid on the 1st every month so landlords earn more and worry less because Nomad eliminates the unnecessary vacancies that plague the industry and costs landlords tens of billions of dollars annually. Nomad provides the level of management normally reserved for massive companies with hundreds or thousands of homes. For tenants used to simplified, tech-enabled experiences, they get to experience the same from an individual landlord. Nomad also unlocks economic opportunity for residents/tenants in its network by helping them build their credit, offering flexible leases, and helping them bridge into homeownership by covering closing costs when they buy their first home.
The Denver-based startup entered the Phoenix market in 2021 and has seen strong adoption from customers. Nomad also bolstered its offerings by adding more financial products for rental owners such as rent advance, rewards for tenured residents, and brokerage services that enable customers to buy, sell, rent, and manage with Nomad’s support. The company’s revenue grew by 8x in 2021, has saved its customers nearly 30,000 hours of time, and is trusted to guarantee rent for homes valued at over $250M in aggregate.
“Individual landlords make up the majority of the single family rental market, and Nomad exists to solve their single largest pain point: uncertainty. No one has a crystal ball, but guaranteed rent allows landlords to operate on sure footing – and with access to the benefits of scale that usually only belong to massive single family rental corporations funded by large Wall Street institutions,” said PJ O’Neil, Nomad CEO and co-founder. “We want to shake up the SFR experience and this funding will accelerate the momentum that benefits small landlords and their tenants in an ever-changing rental market.”
“Nomad has created a unique product that transforms the landlord-tenant experience for the single-family rental market – every customer testimonial is proof of the need in the market,” said Beau Laskey, Managing Partner at SVB Capital. “This team is uniquely positioned to execute on the vision and their traction with landlords and tenants is impressive. We are thrilled to partner with them on the journey ahead.”
Nomad plans to use the funds to help small-time landlords and residents navigate the fast-moving and turbulent rental markets that are seeing historical growth and change as Americans reshuffle and reevaluate where and how they live. The startup plans to expand to 10 new markets in the next 24 months. The first expansion will be this spring to Raleigh, North Carolina. The company has larger plans for US expansion in 2022 and 2023.
“Raleigh is a logical next step for Nomad with it’s tech-savvy rental owners, a history of adopting innovative new real estate models, and fundamentally-strong rental market,” remarked Matt Thelen, Nomad co-founder.
Nomad is hiring across all teams to support expansion into additional markets and the development of new product offerings. It plans to hire more than 50 people in 2022. Nomad is well-positioned to make renting better for everyone involved in the long-term rental market. Whether you’re a landlord or tenant, keep an eye on Nomad to see if it’s coming to your market in the near future.
Nomad’s vision is to unlock economic opportunity for everyone in the long-term rental community. We offer rental property owners certainty, value, and ease that simply can’t be achieved elsewhere because we align Nomad’s incentives with those of our customers. Its guaranteed rent offering eliminates risk while helping property owners maximize their income. Nomad’s resident rewards program currently offers flexible leases, opportunities to build credit and save when buying their first home, along with a 24/7 personal concierge. Nomad operates in Colorado, Arizona, and will soon be expanding into North Carolina.
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