Venture fund TA Ventures and private investors club ICLUB invested in the New York-based property startup June Homes. The $27 million Series B round was led by SoftBank Ventures Asia with the participation of TQ Ventures, FJ Labs, K50, Reshape, Quiet Capital, and angel investors. The total funding amount of June Homes reaches $50 million. The company intends to use the funds to accelerate expansion to other US markets.
About June Homes
June Homes is a platform to rent fully furnished apartments in the US. The company has a unique approach to sourcing the supply side. Unlike other startups that work with professional developers or institutional landlords, June Homes go after a different market. They cover mom-and-pop landlords that own just one building, landlords that have typically held the property for 10+ years and have already paid off their mortgage, and other underpriced segments.
The company has built an algorithm that helps them find an underpriced rental property that needs some additional repair work. After that, in under 72 hours, June Homes can get the apartment ready to be rented. June Homes clients can choose whether they want a furnished or unfurnished apartment. Also, they can live alone or with flatmates.
A data-driven approach with an asset-light financing model allows June Homes to scale faster than the competitors.
TA Ventures and ICLUB investment rationale
TA Ventures founding partner, Viktoriya Tigipko, met Daniel Mishin, startup founder, and CEO a long time ago — while he was working for his previous company in the hotel/hostel market. After that, the TA Ventures team became a part of the new Mishin’s project — June Homes.
“June Homes has become one of the largest residential real estate operators in the US in a few years, with a business model that includes lightweight components that allow it not to own properties directly, thereby freeing up its balance sheet. There are already several players in Asia with valuations over a billion, and here, the experience of Softbank (leading Series A and B) helps us a lot in achieving such goals,” explains TA Ventures partner Oleg Malenkov.
