LA-based proptech company Snappt announced Tuesday that it raised $100 million in fresh financing. The Series A, led by Insight Partners, will be used to help the company continue to scale in the wake of record growth.
Snappt is the latest in a long line of proptech startups to accrue massive amounts of capital as of late. Over the last year, the burgeoning real estate tech sector raised a record $9.5 billion, according to The Wall Street Journal.
“With homeownership costs skyrocketing post-pandemic, many Americans are turning to rental properties as their ‘go to’ housing option,” Daniel Berlind, CEO and co-founder of Snappt, said in a statement. “Although positive for the multifamily sector, this surge presents an inherent challenge for property managers as they work to mitigate costs associated with fake renter documentation.”
In the past year, 85 percent of property managers have experienced application fraud, which accounts for an estimated 25 percent of evictions, according to Snappt. Given those statistics, it’s hard to ignore the fact that application fraud is an expensive problem.
Snappt’s platform provides landlords with fraud detection software to sift through their rental applications. The software specifically searches for pay stubs and bank statements that have been fraudulently altered. Snappt analyzes the code behind these documents to make sure they match up with the likes of those from financial institutions.
“Our vision is to dramatically lower the number of fraudulent tenant applications that go undetected, helping our customers save millions in eviction costs and minimize risk,” Berlind said in a recent statement.
Snappt experienced over 700 percent growth in 2021. That growth is set to continue well into 2022 if the company’s latest raise is any indication.
As part of its continued effort to scale, the company plans to invest in product development and expand its sales and marketing efforts.
Snappt has raised $100 million in venture capital financing to date, according to Crunchbase.
