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Insurance startup TheGuarantors closes $15M Series B as it expands offerings
The company has also entered the commercial market in partnership with Chubb
TheGuarantors, a startup that insures New York renters who don’t meet landlord requirements, has closed on Series B funding.
The $15 million round was led by Global Founders Capital, bringing the company’s total fundraising to $27 million, TheGuarantors said in a statement. The company will use the funds to expand nationwide and launch a new product for the commercial real estate industry.
Global Founders Capital has previously invested in companies including Facebook and LinkedIn. Most of the Series A investors — including White Star Capital, Alven Capital, and Partech Ventures — also participated in the latest round, the company said. Silverstein Properties’ accelerator SilverTech Ventures is also an investor.
TheGuarantors is among companies — including Insurent — aiming to fill a gap in the rental market amid the city’s high prices. Most landlords only accept tenants with an annual income of at least 40 times the monthly rent and who have credit scores greater than 700. Those who can’t meet those requirements, and who don’t have their own guarantors, can turn to these companies instead.
TheGuarantors launched their residential lease guarantee business in 2016 and has since guaranteed more than $200 million in leases, according to the company. The startup insures tenants who earn just 27 times the monthly rent and have credit scores as low as 630. It takes into account savings and other liquid assets, as well as income earned overseas. Landlords and property owners across 40 states have used the platform, according to the firm.
The company is also making a foray into the commercial market with Securiti, a program that allows office tenants to replace their security deposit for an annual fee while offering landlords insurance. Insurer giant Chubb is backing the policies. The program, the company argues, allows tenants to free up cash.
“Security deposits are often a point of friction in lease negotiations,” Tal Kerret, president of Silverstein Properties, said in the statement.
TheGuarantors estimates that more than $150 billion of applicable security deposits are tied up in commercial leases in the U.S.