Funnel raises $32 million to expedite adoption of the new operating model by multifamily leaders
Renter-centric tech drives centralization, ideal renter experiences, cost savings for companies and relief for overstretched teams;
Series B-2 led by RET Ventures and industry leaders
October 30, 2023, TAMPA, FL — Funnel Leasing, the first Renter Management Software platform, today, announced the completion of a $32 million Series B-2 financing round to unlock the new operating model for multifamily leaders. The financing is led by RET Ventures, the leading VC investor in “rent tech”, whose 50+ strategic investors comprise the largest group of apartment owners and operators working together to drive innovation in multifamily, representing over 2.5 million rental units. They are joined by Trinity Ventures and a group of leading multifamily owner operator co-investors. Property managers and owners plagued by rising costs and increasing labor challenges now have access to a flexible, cost-saving operating model that offers complete enterprise-wide visibility, and an ideal renter journey. The new model, built on a foundation of modern, renter-centric technology, AI and automations delights renters and teams, while managing expenses and saving owners and operators tangible costs and time.
The financing expands Funnel’s sales and marketing teams significantly, including the recent addition of multifamily veteran and former Entrata and Homie co-founder, Johnny Hanna. Additionally, the round recognizes the completion of Funnel’s front office suite including: CRM, virtual leasing agent, online leasing, onboarding, and a resident portal. Funnel’s platform, the industry’s first Renter Management Software (RMS), is architected fundamentally differently from other multifamily solutions as the renter — not the property — is the source of truth, creating clear visibility and insights across the entire renter journey and unlocking shared services and role specialization for teams. A renter-centric architecture and connected front office suite allows operators to abandon the antiquated 1:100 leasing operating model, relieves teams, reduces costs, creates better margins, and delights renters. This win-win-win for teams, renters, and the company is the rarest trifecta of success. Funnel powers the new centralized operating model embraced by 8 companies who rank as top 20 owners or operators, among many other customers.
“Funnel is uniquely positioned to combat many of today’s worsening problems: increasing fixed expenses, lower renewals, talent shortages, and skyrocketing consumer expectations. This new financing ensures our current clients and future partners can rely on the industry’s only independent CRM with a steadfast commitment to innovation, and we’re thrilled to partner with RET, the biggest single vote of confidence in the multifamily space,” said Tyler Christiansen, CEO, Funnel. “In a sea of acquisitions and frustrating technology shortcomings, the status quo operating model continues to disappoint renters, burn out teams, and limit owners and managers. The future of multifamily leverages enterprise-grade technology, automations and shared services to provide renters and residents the best experience at every step of their journey — from inquiry to move-in to renewals — all while making teams’ roles more engaging.”
“In a sea of acquisitions and frustrating technology shortcomings, the status quo operating model continues to disappoint renters, burn out teams, and limit owners and managers. The future of multifamily leverages enterprise-grade technology, automations and shared services to provide renters and residents the best experience at every step of their journey — from inquiry to move-in to renewals — all while making teams’ roles more engaging.”
— Tyler Christiansen, CEO, Funnel
The RMS platform gives property management companies of all sizes — from large REITs, to privately owned, and third-party managed companies — the flexibility they need to reorganize their operating model and prioritize teams’ task lists so that high-value items are completed first. Teams, in turn, are free to focus on their most valuable follow-up, and trust AI and automation to handle rote tasks. This aligns organizations at every level to delight renters, create rewarding jobs for teams, and operate with greater efficiency while creating a consistent branded experience for renters.
“We traditionally invest in themes, backing technologies that can solve the most acute challenges for real estate operators, and Funnel is our flagship platform in self-leasing and one of our firm’s largest investments to date. With their completed platform, owners and operators no longer need to use antiquated software to manage their renter journeys, and can now graduate to a modern platform architected around how owners, teams, and renters behave today,” said John Helm, Founder and Partner at RET Ventures. “Our conversations with our strategic investors point to the need for a streamlined, centralized operating model that leverages automation to reduce costs for multifamily operators while improving the customer experience. Only Funnel’s renter-centric architecture empowers operators to make these needed changes. As rent increases slow and operators look to improve efficiencies, we expect their industry adoption to continue to accelerate.”
“Our conversations with our strategic investors point to the need for a streamlined, centralized operating model that leverages automation to reduce costs for multifamily operators while improving the customer experience. Only Funnel’s renter-centric architecture empowers operators to make these needed changes. As rent increases slow and operators look to improve efficiencies, we expect their industry adoption to continue to accelerate.”
— John Helm, Founder and Partner, RET Ventures
Funnel provides a win to three vital groups: renters who demand a better customer experience; stretched-thin onsite teams who demand a better long-term career; and operators looking to reduce costs and improve efficiencies. Funnel’s AI and automation-powered platform is the enterprise-grade solution industry leaders, owners, and operators trust to deliver a streamlined, consistent, and connected experience from first inquiry through years of renewals, while simultaneously saving operators quantifiable money through the operational flexibility only a renter-centric platform can provide. We call it Renter Management Software; our clients call it the new operating model.
About RET Ventures
A leading real estate technology venture capital firm, RET Ventures elevates real estate innovation by investing in cutting-edge technologies out of its core venture funds and a Housing Impact Fund. RET works in partnership with its base of more than 50 Strategic Investors who own and manage over $600 billion of real estate assets, with a particular focus on multifamily and single-family rental real estate. In these asset classes, the group includes some of the largest REITs and private real estate owners, operators and developers, who together control approximately 2.5 million rental units. Through its deep expertise and network, RET has created a unique real estate innovation ecosystem that delivers significant value to the companies it backs, providing access to thought leaders, development partners and ongoing strategic guidance. For more information, please visit www.ret.vc.
Alex Howe, VP of Marketing