LeaseLock has raised $52 million in new venture funding from a roster of investors including Liberty Mutual and American Family Insurance.
The California-based InsurTech and MGA provides nationwide lease insurance through its proprietary artificial intelligence-based platform, and plans to use the Series B financing to expand its reach.
London-based Westerly Winds (founding partners from BlackRock) and Wildcat Venture Partners led the round. Other major investors include SoftBank Ventures Asia, Vertex Ventures US, Liberty Mutual Strategic Ventures, American Family Ventures, Moderne Ventures, Strata Equity Group, Veteran Capital, and Mucker Capital.
“We’re a technology company at heart, fueled by data, and powered by insurance. We deploy our product directly through enterprise property software systems which drives a material data and product delivery advantage,” said Derek Merrill, Co-Founder and CEO of LeaseLock. “We’re doubling-down on our core deposit replacement product, while investing in new insurance lines, payment and receivables technology, and market channels.”
LeaseLock claims to have insured $1 billion in leases to date, with some of the nation’s largest multifamily building owners and asset managers among them.
LeaseLock uses property management system “integrations” and data science for what it bills as “a modern financial technology platform for housing operators.” The company describes its Zero Deposit insurance product as leveraging artificial intelligence to eliminate security deposits from “enterprise operating infrastructure.”
Once a property launches Zero Deposit, any resident approved or conditionally approved by the rental property is automatically approved by LeaseLock, according to the company’s web site. A typical plan might cost residents $19 per month, covering for property owners up to $2,500 rent and $400 for damages, though other plans are available, the company said.
LeaseLock lists customers including Greystar, Cushman Wakefield, Avenue5 Residential, Harbor Group, LMC, RKW Residential, Goldman Sachs, ColRich, GoldCor, Olive Tree, TruAmerica, White Oak, Trinsic, and Goodman Real Estate.
Another InsurTech in a related space recently raised money. Rhino, based in New York City, pulled in $95 million in new financing to propel growth of its security deposit insurance business. For Rhino users, renters pay a small monthly fee that can be as little as $1.50 per month, with coverage for the property owner addressing lost rent and possible damages.
Source: LeaseLock