Funding from York IE, One Way Ventures, and PJC brings alternative option for Boston's rental market, creating largest room based rental platform in the city
BOSTON, MA / ACCESSWIRE / April 21, 2021 / SplitSpot, Boston's largest flex-lease room based platform, today announced it has raised $2 million in financing. The funding round was led by both York IE and One Way Ventures, with support from PJC among other investors. SplitSpot has quickly become the largest room rental platform in Boston, and this funding will help it rapidly expand to meet the needs of both renters and landlords.
SplitSpot simplifies the rental process with a more turnkey, tenant-friendly experience, as well as a supportive tenant placement and management partner for property owners and landlords. With over 500 rooms across greater Boston, SplitSpot has had 3x year-over-year growth within the last 24 months. The company plans to use this latest investment to continue their expansion to other geographies beyond Boston and to invest in the company's tech and internal operations teams.
Co-founders Ernesto Gaxha and David Mazza draw upon their own rental experiences as the inspiration behind the platform. Having experienced numerous challenges living in cities like Boston and New York with brokers' fees, high costs, and inflexible leases, they were inspired to come up with a way to untangle the rental process.
"We understood the complexity behind the rental market and saw room for improving the process in an innovative way for both landlords and tenants," said Gaxha. "We're excited to continue tackling the massive problem of unaffordable and inaccessible housing in major cities. With these new resources, we will be able to expand SplitSpot into more metro areas across the country, and expand our reputation as an easy, reliable, and trusted renting solution."
The Covid-19 pandemic has escalated the need for a simpler way to find properties with flexible lease options with a heightened roommate screening process. The platform is gaining traction at a time where the formalities of renting a property are increasingly difficult to navigate. Lease terms are seldom flexible with overhead broker fees and hidden charges without one centralized place for local listings. SplitSpot, on the other hand, advertises properties by the room, providing flexible and accessible rentals that appeal to those looking for these housing solutions. For landlords, SplitSpot minimizes risk by maximizing rental income and providing an end-to-end marketing, sales, and tenant management service for their units
"We truly believe SplitSpot is poised for explosive growth," said Marshall Everson, VP, Investments at York IE. "We saw two founders who had a deep understanding of the problem they were trying to solve and the way they wanted to solve it. Additionally, I think the fact they have growth hacked their way to become the biggest room rental platform in Boston showed the grit, intelligence, and execution any early-stage investor would want to partner with."
"SplitSpot is changing the industry of renting a market that is ripe for disruption between user frustration, high costs, and regulations," said Semyon Dukach, Managing Partner at One Way Ventures. "They're giving back the power to renters by formalizing the rental process while improving occupancy rates for landlords at the same time. We are incredibly impressed with how SplitSpot understands their market, the opportunity ahead, and how they can shake up the rental space as we know it."
"Ernesto and David are tackling a sizable market and have shown great progress thus far," said Matt Hayes, General Partner at PJC. We are excited to have been early supporters in SplitSpot and feel confident this round will enable them to continue growing exceptionally fast."
Alongside the funding, SplitSpot has expanded their Board of Directors with the addition of seasoned early-stage startup executive, Bryan Goodwin, formerly SVP of Drizly, now Co-Founder, President & CRO at TorchCo. Goodwin's presence on the board comes with extensive advising and investing experience in more than 25 startups over the past five years, which will translate to prominent value for SplitSpot's expanding future.
To learn more about SplitSpot, visit SplitSpot.com.
Founded in 2019, SplitSpot simplifies renting for both tenants and landlords. The company intermediates the renting process by providing rooms with flexible lease arrangements and reduced upfront costs, producing an affordable solution for long-term renters in cities. SplitSpot works to improve accessibility for housing while providing landlords quality tenants. http://www.SplitSpot.com