SmartRent, a provider of smart home automation for property owners, managers, developers and residents, announced it has closed a $60 million Series C funding round led by Spark Capital with participation from Fifth Wall, Energy Impact Partners, the Amazon Alexa Fund, Bain Capital Ventures and RET Ventures.
With COVID-19 ushering in an era where digital, contactless experiences are required to address the needs of multifamily property owners/operators and their residents, real estate companies are turning to smart home and smart access technologies to meet the new reality. The explosive growth of package shipping, product and food delivery, combined with the need for self-guided tours and contactless entry, is driving demand for SmartRent. In 2019 alone, the company experienced 600% growth in the number of connected units.
“The tailwinds of e-commerce, food and grocery delivery, and the broader digital economy were already significant entering 2020, resulting in widespread demand for hardware-agnostic smart home and access technology platforms like SmartRent,” said Will Reed, general partner at Spark Capital. “That demand has only accelerated as property owners and operators look for ways to make property tours contactless and handle deliveries in a seamless manner. We’re thrilled to partner with Lucas and the entire SmartRent team as they continue to help an entire segment of the economy digitally transform their operations and resident experiences.”
SmartRent offers a range of connected, brand-agnostic solutions designed to give multifamily property owners, managers and residents more efficiency, convenience and security protection across their property. Solutions include the Alloy Fusion all-in-one touchscreen hub and thermostat, the newly launched Alloy Access for access control, and self-guided tours. Today, companies like Essex Property Trust, MAA and Aimco use SmartRent to connect, automate, protect and manage tens of thousands of housing units nationwide.
To build on this momentum and help the company achieve its next stage of growth, SmartRent is also announcing two significant leadership hires. Darian Hong is the company’s new chief financial officer, bringing decades of experience overseeing financial operations at high-growth technology companies. CJ Edmonds joins as chief revenue officer to support the company’s next stage of growth and evolution.
“This round of funding will enable our next phase of growth as we expand our portfolio to ensure more homes can benefit from a seamless smart home experience,” said Lucas Haldeman, CEO and co-founder of SmartRent. “With this latest funding round and new executive hires, we will continue to evolve our offerings to support the multifamily and housing industry amid a challenging economic period and an increasingly digital society.”
Investor Quotes:
“We see the potential for multifamily residential to be one of the next growth opportunities for smart home technology,” said Paul Bernard, director for the Alexa Fund. “Since becoming an investor in the Series B, we have been impressed with the SmartRent team’s approach to bringing smart home automation tools to renters, property owners and managers through a solution that easily integrates with existing property management workflows. Further, we share a common view on the role of contactless solutions such as Alexa-enabled devices in the smart apartment of the future and look forward to continuing to support them on the execution of their vision.”
“SmartRent, led by Lucas Haldeman and his stellar team of technology and real estate experts, already achieved strong momentum before the pandemic hit, but social distancing has made SmartRent’s home automation solutions even more relevant,” said Merritt Hummer, partner at Bain Capital Ventures. “SmartRent’s software enables property managers to remotely manage building access, allowing maintenance staff and prospective tenants to enter apartments with one-time access codes; in addition, SmartRent’s mobile app provides renters benefits such as keyless entry and smart home controls. SmartRent’s mission is to become the de facto property management platform for residential real estate and we are excited to support the company in that endeavor.”
“The tenant-landlord relationship continues to evolve and in a post-COVID world, the trust between these two parties will be more important than ever,” said Vik Chawla, partner at Fifth Wall. “From self-guided property tours to digitized climate and access control, SmartRent provides a seamless, secure, and contactless tenant experience while helping landlords provide a safer and more connected community. We are thrilled to partner with Lucas and his team, and look forward to playing a role in SmartRent’s continued success.”
“After years spent searching for a purpose-built solution to improve quality of life and drive energy savings in the multifamily market, we’re excited to have found a partner in SmartRent,” said Lindsay Luger, partner at Energy Impact Partners. “We look forward to working with them and our utility partners to deliver the ideal experience for building owners, managers and their tenants.”
“Lucas and the SmartRent team recognized early on the need for a single platform that integrates the growing number of smart home tools and provides a seamless interface for both the resident and property owner/managers. Since then, the team has successfully built on that vision to become the market leader in its category,” said John Helm, partner at RET Ventures. “With Spark Capital joining SmartRent’s investor base, the company has added a vital value-add investor that will help it continue to consolidate its market leadership among leading apartment owners and operators.”
