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AvantStay, a platform for kitting out — and then renting out — high-end vacation rental homes, raises $160M – FiratNews

AvantStay, a platform for kitting out — and then renting out — high-end vacation rental homes, raises $160M – TechCrunch

One other journey startup that discovered itself scrambling to pivot because the COVID-19 pandemic took off is now saying an enormous spherical of funding after discovering its toes and proving that it may develop, even below hostile circumstances. AvantStay — which has constructed a platform the place it decorates after which lists properties owned by others for folks to hire out for holidays or different short-term stays — has raised $160 million in a Collection B spherical of funding. The corporate noticed revenues develop tenfold within the final two years and its complete variety of properties balloon to over 1,000, and now it is going to use the brand new funding for growth, particularly including extra properties to its platform; and to proceed growing its expertise because it expands into extra points of the property leases enterprise.

Tarsadia Investments and 3L Capital (which led its Collection A) co-led this spherical, with participation additionally from earlier backers Plus Capital, Bullpen Capital, and Convivialite; new, strategic buyers Capital One, Saluda Grade, Coller, Grerenhawk, Stephen Pagliuca, Fred Tuomi, Jerry Coleman and Jay Mckee; and movie star buyers together with Paul George and Shawn Mendes.

AvantStay’s primary premise is predicated round kitting out after which dealing with the leases for high-end properties as a viable different, and even enchancment on, the expertise {that a} typical visitor might need had in a five-star resort; and it has harnessed expertise in help of that. The instruments that it has constructed embody Voyage, its proprietary working system to handle properties; a concierge app to assist its friends with providers earlier than, throughout and after stays; its front-end reserving platform; and a just lately launched actual property platform.

The concierge service is a part of AvantStay’s technique of complementing its leases as many facilities as friends might need in high-end lodges — and amongst its tech funding plans, it needs to proceed extending the providers that may be supplied on it. The startup may even proceed to evolve the actual property enterprise, the place it helps join trip property buyers with properties, performing because the dealer after which the only real agent for renting these properties out. (However to be clear, it doesn’t personal properties itself.)

Los Angeles-based AvantStay has been round since 2017 and had solely raised $25 million within the final 4 years. In that context, this funding is critical — and enormous for a Collection B — and underscores a number of the traction the corporate has been having, particularly at time when vacationing all however grounded to a halt. The corporate stated that within the final two years it added greater than 700 properties and 80 new locations (some partly by the use of six acquisitions that it has made in that point), and it grew revenues 10x.

In all, Sean Breuner, AvantStay’s CEO who co-founded the corporate with Reuben Doetsch (the CTO), stated that 750,000 friends keep in its community of properties, with the typical quantity per properties being seven friends. It’s at the moment not worthwhile, but it surely truly did tip into profitability through the pandemic, chopping numerous prices and in addition shifting to longer-term leases aimed toward corporates.

Airbnb has created and leads the marketplace for non-public dwelling lodging — and it occurs to be one in every of 60 companions that AvantStay has secured for advertising and marketing the properties on its platform — however Breuner believes the chance to develop a enterprise distinct from that, aimed particularly on the alternative with higher-end properties, nonetheless has numerous progress left in it in its personal proper, partly as a result of there are nonetheless numerous customers and enterprise vacationers which have but to simply accept that they may have an expertise higher than what they’ve at high-end lodges.

“Prospects are beginning to meet the demand from an expertise perspective in rental properties,” he stated. “It has at all times lagged lodges by a large margin. However the expertise now matches the wants and necessities of what a visitor is on the lookout for.”

“Since we led AvantStay’s Collection A funding over two years in the past, we’ve watched the corporate not solely develop their provide and income tenfold, but in addition navigate one of many worst attainable macro shocks that occurred within the hospitality trade,” stated Jodi Kessler, a associate at 3L, in an announcement. “Their unimaginable execution and resilience, mixed with an enormous tailwind within the journey sector for AvantStay’s product makes us excited to double down on and help the staff as they proceed to construct each a world-class hospitality model for vacationers, and a vertically built-in platform by means of which people and establishments can spend money on short-term rental properties.”

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