Frontdesk Announces Largest Funding Round to Date With $7 Million in New Investments

Short-Term Rental Brand on Pace to Reach Aggressive 2021 Growth Goals

MILWAUKEE, WI / ACCESSWIRE / August 5, 2021 / Frontdesk, Inc., a leading tech-enabled short-term rental brand, is proud to announce the closing of a $7 million oversubscribed venture round of funding led by Stormbreaker Ventures. This latest funding brings the fastest-growing short-term rental brand to $18 million in total funding.

"When Stormbreaker approached us this Spring, we had the cash flow to grow in line with our lofty expectations, but this preempted venture round gives us the ability to scale exponentially. Given how strong the demand has been for our tech-enabled STR platform, we saw more opportunity to grow than anticipated," said Kyle Weatherly, Co-Founder and Chief Executive Officer at Frontdesk. "Ultimately, we decided to 'fuel the fire' and emerge from the pandemic as leaders in the booming short-term rental space. The influx of capital will drive further growth to both our management and our technology businesses, fulfilling the demand that is in our lap with short-term stays now exceeding pre-pandemic numbers," said Weatherly.

The new funding will help the next-generation hospitality brand continue its unprecedented growth - now operating in 35 U.S. cities with over 250 employees. In addition, Frontdesk plans to accelerate its burgeoning software business, Frontdesk Flex, serving the growing market of professional short-term rental property managers with a full suite of proprietary and white-labeled technology solutions. The same solutions enabled their brand to achieve such rapid and profitable scale, such as a property management system, direct booking engine, dynamic pricing algorithm, access control, task management, and more.

"Not only has Frontdesk succeeded in achieving rapid scale, but they have done so in a way that is 5-10x more capital-efficient than their peers, showing vastly superior underlying unit economics," said Stormbreaker Ventures' Managing Partner, Said Mia. "Sonder, for example, required 35x more capital to achieve only 8x Frontdesk's scale; meanwhile, other brands have raised $50m+ with less scale than Frontdesk. As a result, we're confident in the company's ability to fundamentally change the way consumers live, work and travel in a post-pandemic era, with their capital-light and tech-forward model."

Frontdesk expects to double its portfolio in 2021 while also turning profitable in 2022. Today, the company is present in 35 U.S. markets in over 160 buildings with over 700 fully managed suites, with Austin, Philadelphia, and Nashville being its newest markets added in the Spring of 2021.

"We believe that the lines between where you live and where you stay are continuing to blur and that the future of urban living will be more flexible and more digital," says Jesse DePinto, Frontdesk's Co-Founder and Chief Product Officer. "In a world where people can work from anywhere, we are finding that they often choose not to work from their home. The pandemic forever changed how we work, and now; as a result, short-term rentals and subscription living are redefining the way we live. Frontdesk is uniquely positioned to cater to this modern traveler, whether it's for just one stay or one year of stays across our network of tech-enabled luxury suites."

Additional information about Frontdesk is available online at https://frontdeskstays.com and https://FrontdeskFlex.com. For video explainers, founder stories, jingles, and more visit https://www.youtube.com/c/FrontdeskInc/videos

Press Contact:
Evan White
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Evan@EvanWhitePR.com

SOURCE: Frontdesk