TheGuarantors, an InsurTech aiming to improve tenant-landlord relationships, has raised $15m in its Series B round.
The capital injection was led by global venture capital investor Global Founders Capital. Most of the Series A backers also contributed to this new series funding, including White Star Capital, Alven Capital, and Partech Ventures.
Other notable backers include unnamed angels from the insurance and real estate sectors, and Silvertech Ventures.
Through the new line of funding, TheGuarantors will look to expand its platform across the US and launch its Securiti product to the commercial real estate market. The new service acts as a financing tool for tenant companies and replaces traditional office security deposits.
Traditional security deposits are 4-12 months of tent, through Securiti, tenants can replace their deposit with a small annual fee. This can be used on new and existing leases, enabling tenants to unfreeze capital and finance new projects.
TheGuarantors have partnered with Chubb Insurance to back these insurance policies.
Silverstein Properties president Tal Kerret said, “Security deposits are often a point of friction in lease negotiations. With Securiti, TheGuarantors have created a solution that benefits everyone: tenants have an attractive alternative to costly security deposits and landlords get highly liquid, bankruptcy remote protection from a top provider like Chubb.”
In total, the company has raised a total of $27m in equity. Prior to this latest round, the InsurTech closed its Series A in 2017 on around $11m.
Launched in 2016, TheGuarantors helps renters to complete accommodation processes, by serving as their guarantee for rent. Through the application process a user completes a questionnaire, the company then performs a credit check and review, before receiving approval at a low rate.
Renters insurance is also available to tenants to help them when they are unable to make their payment.
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