Naborly Raises $7.5M Seed, Launches NaborlyShield, a Virtual Tenant That Eliminates the Security Deposit for Renters and Kills Eviction Risk for Landlords
2019 OCT 15 (NewsRx) -- By a
In addition to the funding, the company also announced the
According to RedFin, there are more than 2.2 million evictions in the
“It’s incredibly expensive to be poor in America. The least privileged people pay the highest interest rates and service fees, while offered the fewest options. Not because they don’t repay their debts, but because they do,” said
Due to Naborly’s data and underwriting advantages, the average NaborlyShield protection contract costs just 2% to 5% of the annual rent, making NaborlyShield 50% to 75% less, on average, from similar products in the market.
“This problem is a symptom of our financial system. We realized we needed to build a solution from the ground up, so we took a three-pronged approach,” says Lenz. “First, we rebuild the credit bureau system with free and fair credit that helps tenants build credit by paying their rent. Second, is an insurance-like product where we co-sign or guarantee leases so that all tenants can access sustainable housing. And finally, we extend a low-interest line of credit in those worst-case scenarios to help tenants avoid eviction before they occur.”
“Naborly is reimagining the relationship between landlords and tenants by leveraging the power of technology and data. We see a world where Naborly is the glue for the rental industry, improving the lives of tenants, while providing landlords better data and financial security,” said
Last year, Naborly graduated the Y Combinator (YC) startup program where it made the drastic move of killing its existing revenue model and pivoting away from the tenant screening industry’s standard business model of paying per report or background check. Naborly instead opted for a 100% free model for both landlords and tenants in order to help stop housing discrimination and to accelerate their viral growth. The team also forwent YC’s Demo Day to focus on continued product development, expanding its services nation-wide and optimizing customer acquisition before making its aggressive strategic approach widely public.
As a result, Naborly has grown exponentially to more than 850,000 rentals in just 18 months, making it one of the fastest growing PropTech companies in existence.
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