Technology

DoorFeed Raises €7M in Funding for Platform Catering to Large-Scale Investors Buying Family Homes

AifrontierDecember 22, 2024February 6, 202504 mins

Historically, institutional real estate investors have struggled to buy up large numbers of family homes, commonly referred to as the "Single Family Rental Sector." These investors aim to turn homeowners into rental slaves and lock millions into a rentier economy. However, some startups are attempting to ease the difficulties faced by these capitalistic entities.

Table of Contents

New Players in the Market

One such platform is Immo Capital, which manages residential real estate portfolios and has raised $90.7 million. Another player is Bricklane, a rental housing platform that secured £6 million from London investors. In Spain and Portugal, Casafari has raised $20.5 million to enter the market.

DoorFeed Enters the Scene

The latest entrant in this space is DoorFeed, founded by James Kirimy, an early employee of Uber UK. The company has secured a new funding round of €7 million, led by Motive Ventures, which is backed by Private Equity firm Apollo, owners of Yahoo! and TechCrunch. Stride VC and Seedcamp also participated in this seed extension round.

DoorFeed provides data platforms and operations for investment funds to assemble and manage large-scale portfolios of apartments and houses. The company’s innovative approach allows them to identify properties with poor energy performance, renovate them, and potentially unlock ESG credits from governments.

Revenue Streams

DoorFeed generates revenue through sourcing fees, renovation management fees, and annual property and asset management fees.

Market Trends

Independently examining the market, it becomes clear that these companies are onto something significant. Investment in European living assets exceeded all other real estate asset classes in the second quarter at €10.6 billion, according to JLL. Moreover, 20% of the market is comprised of buy-to-let investors.

Conclusion

DoorFeed and similar startups have successfully navigated the challenges faced by institutional real estate investors in acquiring family homes. Their innovative approach has the potential to revolutionize the industry, making them attractive to investment firms like Apollo-backed Motive Ventures.

About the Author

This article was written by Mike Butcher, Editor-at-large of TechCrunch. With a background in journalism and tech policy, Mike has interviewed numerous influential individuals, including Tony Blair and Dmitry Medvedev. He is also a co-founder of ThePathfounder.com newsletter and The Europas conference.