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Rentberry, a San Francisco-based real estate startup, offers its users a transparent and automated rental experience. The company aims to streamline communication between tenants and landlords while eliminating the need for third parties, such as real estate agents or brokers. Currently, Rentberry is running its RegA+ fundraising campaign, with the offering closing on October 28. The maximum offering amount is $12.4 million, with the company valued at $25 million.
While investments will be used to fund the company’s growth and future projects, a substantial portion of the raised funds is earmarked for the development of the Flexible Living concept. The idea behind it came to light based on the macro trends emerging and becoming more prominent in the rental market since 2020.
The main idea behind Flexible Living is renting out fully furnished properties for three to twelve months exclusively on the Rentberry platform. This solution is expected to allow renters more flexibility in mid-term renting in prime locations without security deposits.
Rentberry’s CEO, Oleksiy Lubinsky, believes that success lies in targeting millennials, with it being the largest generation in US history, accounting for a population of 82 million (and 1.8 billion millennials worldwide). The company sees great potential for mid-term renting to this macro cohort, as well as several selected target groups, such as digital nomads, exchange students, and professionals in search of rentals during lengthy business trips.
Inspired by the shift towards remote work that came into existence several years ago, the trend has become only more prominent since the pandemic’s beginning. Rentberry’s executives believe this is the right time to address it, and the company aspires for its Flexible Living concept to fill the void in regard to limited solutions present in this niche market.
Some large companies operating in the short-term renting sector, such as Airbnb and Booking, have noticed the increasing demand for longer-term renting as well. For some time, they have been trying to expand their scope and include properties that can be rented out at least for a couple of months. However, these companies face difficulties as they were not created to cater to challenges specific to mid-term renting. Some examples could be the lack of important services, such as the ability to easily sign rental agreements, or excessively high prices equal to daily hotel rates.
“Currently, there is no perfect product on the market to address the needs of tenants in need of mid-term rentals. Similarly, no platform offers landlords a comprehensive system to manage their mid-term rental properties,” states Lubinsky. And Rentberry has an audacious goal to change it.
Many high-profile investors were interested in backing the company, drawn by its experienced management team, target market, and the solution Rentberry brings to the industry. As Trevor Bond, board member and co-chair of Harvard Business School Alumni Angels, states, “The Rentberry platform is quite unique; it’s a great user experience that helps the problems of both tenants and landlords, and, I think, it has a very promising future.”
The company has raised over $13 million in previous rounds from venture capital funds such as Zing Capital, Beechwood Ventures, 808 Ventures, and angel investors from Google, McKinsey & Company, and CBRE.
Since 2021, Rentberry has been running a RegA+ investment campaign on the StartEngine platform. By now, the company has accumulated over $10.6M in investments and has already drawn the attention of more than 6,000 investors. Rentberry aims to raise $12.4M before the current campaign ends on October 28th. The minimum investment is $300, and they offer a chance to receive a 30% equity bonus if investing from $10,000.
The company operates in the rental sector, which has a significant market share in the real estate industry and the potential to grow even stronger year over year. In the US, 44 million properties are occupied by tenants who spend $694 billion on rent annually.
Currently, Rentberry offers more than 5 million rental properties in over 50 countries and has over 1 million monthly active users around the world. It has been featured in media outlets such as Forbes, Inman, Entrepreneur, WSJ, and Business.com.
According to the company’s CEO, Oleksiy Lubinsky, “Rentberry has tremendous potential, and we believe our product can make a difference in the international long-term and mid-term rental market. The upcoming investments will assist us in further development of the product as well as to accelerate the growth of new initiatives.”
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT. YOU MAY OBTAIN A COPY OF THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM HERE.
Natural gas prices hitting 14-year highs this year made coal more cost-competitive in the energy marketplace. (Alex — stock.adobe.com)
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