Nomad, founded by Opendoor and Twilio alums, closes on $20 million to ‘transform the landlord-tenant experience’ – TechCrunch

Startups

Nomad, a marketplace that aims to offer small rental home owners “guaranteed rent,” has raised $20 million in a Series A funding round led by Silicon Valley Bank Capital.

The raise comes just six months after the Denver-based startup raised about $5 million in a serious round of funding. Nomad’s co-founders PJ O’Neil and Matt Thelen started the company after leaving their respective positions at Opendoor and Twilio. O’Neil was General Manager at Opendoor and Thelen was Director of Operations at Twilio.

Founded in 2020, Nomad aims to remove risk and financial uncertainty for owners of small rental properties. Today, it offers various financial products for both landlords and their residents. Its flagship product is guaranteed rent for rental property owners (mainly do-it-yourself landlords), which is designed to give these landlords greater security, even in turbulent market conditions.

“We help these landlords maximize their revenue by reducing unnecessary vacancy costs that are painful to bear when mortgage and other costs need to be covered,” said O’Neil.

in 2021, Nomad said it grew “8x,” or 700% year over year, handling more than $10 million in rent and guaranteed rent for a portfolio of homes valued at more than $250 million. It has also expanded its team from 12 to 40 today and has more than 1,000 customers on its platform, including owners and residents.

Last year, the company also entered the Phoenix market, looking to Raleigh and then Charlotte, North Carolina. It also added more financial products for rental owners, such as rent advances, permanent resident rewards and brokerage services that provide its clients with a way to buy, sell, rent and manage with its support.

In particular, in addition to guaranteeing rent, Nomad has embedded a financial product into its core offering that allows property owners to tap into their future rental income by requesting up to six months’ rent advance. The idea is that they can use the money to do things like upgrade their property, or to invest in another rental property.

Nomad also wants to help tenants by positioning them as first-time buyers in the housing market. For example, it reports timely rent payments to credit bureaus to help tenants build their credit. It also offers discounts to cover closing costs if someone chooses to buy their first home with Nomad.

“Our goal is to make renting better for everyone involved, from DIY rental owners and residents to property managers, brokers and maintenance professionals,” said O’Neil, who is the CEO of Nomad.

The company plans to use its new capital to hire dozens of additional employees this year and expand its geographic footprint to up to 10 new markets over the next 24 months. It also plans to continue investing in its technology and partnering with local brokers, property managers, lenders and service professionals.

Nomad’s investors are, of course, optimistic. Kickstart Fund, Peterson Ventures and Range Ventures also participated in the financing.

“Nomad has created a unique product that transforms the landlord-tenant experience for the single-family rental market,” said Beau Laskey, managing partner at SVB Capital, in a written statement.

Chris Erickson of Range Ventures, who wrote the first check in Nomad and co-founded Apartment List, believes the the single-family rental market is undergoing a major shift.

“We see billions of dollars of institutional capital being deployed in the space and new homebuyers increasingly being barred from owning a home,” he wrote via email. “We believe Nomad will empower residential rental home owners to remain competitive amid the arrival of Wall Street landlords and empower its residents to become first-time homeowners.”

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