Proptech startup Lessen raises $35M in Series A funding

VC firm Fifth Wall led round for property management firm that connects owners to service, maintenance providers

National /
Jun.June 24, 2021 06:06 PM
Lessen CEO Jay McKee and Fifth Wall managing partner Brendan Wallace (LinkedIn)

Lessen CEO Jay McKee and Fifth Wall managing partner Brendan Wallace (LinkedIn)

Lessen, a rental property management platform, raised $35 million in Series A funding.

The two-year-old company connects single-family and multifamily owners to plumbers, electricians and related service and maintenance businesses.

Venture capital firm Fifth Wall led the round as it continues to place big bets on the proptech industry. Other investors in the round included Khosla Ventures, General Catalyst and Navitas Capital.

Lessen CEO Jay McKee previously founded single-family rental company Colony American Homes, which in 2015 merged with a Starwood Capital Group affiliate. While at Colony American, McKee said he noticed a shortage of technology for property management services, and also wanted to provide it at a larger scale.

Scottsdale, Arizona-based Lessen provides services for several large multifamily and residential real estate investment trusts, McKee said. He declined to give their names.

McKee said the company’s goal is to “lessen the expenses of our clients, to lessen the friction and corporate overhead that may be inefficient,” McKee added. The business model also appears to have been the inspiration for the company’s name.

The latest funding round accounts for about 80 percent of Lessen’s $44 million raised. The company also has offices in Seattle and Miami.

Brendan Wallace-led Fifth Wall has been actively investing in property technology companies. In April, it launched its third special purpose acquisition company this year, targeting proptech firms outside the U.S.

Lessen’s platform works with more than 1,000 service and maintenance providers across 26 markets for single-family, multifamily and short-term rental properties, the company said.

The single-family rental market in particular has seen an explosion of investment since the pandemic. This week, Blackstone Group agreed to pay $6 billion for single-family rental company Home Partners of America.

Despite the single-family rental market boom, landlords “lack the technology needed to effectively manage maintenance across their portfolios at scale,” said Fifth Wall’s Dan Wenhold.


Related Articles

arrow_forward_ios
Accurate CEO Jack Klugmann and the Fairfield, CT Metro North train station (Accurate, Robert Mortell/via Wikimedia Commons, iStock)
NJ developer buys Fairfield Metro dev site
NJ developer buys Fairfield Metro dev site
NRIA Fund president Rey Grabato and 360 Main Street in Hackensack (NRIA, Google Maps, iStock)
Resi project in Hackensack threatened by bankruptcy, alleged fraud
Resi project in Hackensack threatened by bankruptcy, alleged fraud
Judge Christina Ryba and Housing Justice For All’s Cea Weaver (NYSBA, iStock)
Judge voids Albany’s good cause eviction law; tenants abandon city-by-city push
Judge voids Albany’s good cause eviction law; tenants abandon city-by-city push
Beechwood Organization's Steven Dubb and a previous rendering of Country Pointe Elwood (Beechwood Homes)
Developer nixes age restriction on 385 homes planned at elusive Elwood site
Developer nixes age restriction on 385 homes planned at elusive Elwood site
Marcus & Millichap Associate David Ferber in front of part of the 30-building, 319-unit portfolio concentrated in Jersey City (Marcus and Millichap, iStock)
Hot rental market boosts NJ multifamily despite rate hikes
Hot rental market boosts NJ multifamily despite rate hikes
Anthony "Fat Tony" Salerno and the Rhinebeck horse farm (Hudson Modern, Getty)
Rhinebeck farm once owned by mob boss lists for $1.5M
Rhinebeck farm once owned by mob boss lists for $1.5M
Long Island Board of Realtor's Tessa Hultz (LIRealtor.com, HomeForAllOfUs.org, iStock)
How not to discriminate: Long Island Realtors launch fair housing effort
How not to discriminate: Long Island Realtors launch fair housing effort
A photo illustration of the Ram's Head Inn at 107 South Ram Island Drive in Shelter Island Heights (LoopNet, iStock)
On the dock-et: Shelter Island inn owner sues town
On the dock-et: Shelter Island inn owner sues town
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...