A New York based startup named Promise has raised $20 million in its Series A funding round. The startup’s aim is to provide affordable housing to communities in need. Promise is a growing online real estate platform that connects renters with landlords. Since it was launched back in 2015, Promise has built partnerships with multiple landlords, foundations, and developers of affordable properties. The platform is simple, renters apply for affordable housing properties, and the platform itself streamlines the leasing process.
On November 1st, the company announced that they have closed the series A funding round with new investors. The investors are named Formation8 and SoftBank Vision Fund. These investors are now included in the list, the previous investors were Red River Ventures, Great Oaks VC, and Upfront Ventures.
This new funding round will help Promise in expanding into new markets and lead to better product development.
What is Promise?
Promise is an online real estate platform that helps renters apply for affordable housing. It also helps in streamlining the lease process. The online app connects potential buyers with local affordable housing that matches their needs and budgets.
Once these potential buyers have applied for a specific option, the software lets the property manager know. Then the property manager can collect the necessary information from the applicant.
What’s the Need for Affordable Housing?
According to some recent research, a third of American Households are over-burdened with their housing expenses. On average, they spend 30% of their income on housing. This situation becomes tougher for lower-income families, who end up moving to cheaper and less safe neighborhoods.
Not having a proper home can lead to social issues such as food insecurity, poor health choices, and less focus on education.
How does Promise Make Affordable Housing Easier to Find?
Promise’s app gathers all the information about a potential renter’s financial health. These include household composition, preference, locality, and type of housing needed.
Then the software matches the data against the local affordable housing that’s listed on their database. Promise even helps the renters to apply for these housings easily. It compiles all the necessary documents and information on behalf of the renter, and even communicates with the property manager.
What Makes Promise Different Than Other Real Estate Platforms?
Promise is unique because of what it has to offer. Following the process of Promise, a lot of real estate platforms have now started expanding into affordable housing space.
However, what makes Promise unique is its focus on renters who qualify for affordable housing. It’s not just a renters centric platform, it is also helpful for property managers.
Renters can qualify for affordable housing opportunities using the Promise Website. Promise managers can use the software to keep track of the applicants, talk with applicants, and view reports.
Final Word – Promise $20 Million Series A Funding Round
More now than ever people need affordable housing. The real-estate industry is, fortunately, complying by offering affordable options to qualifying renters. While a lot of new and old platforms are now entering the affordable housing industry, Promise helps renters find the property, and streamlines the application process.
This new funding round will help Promise expand into new regions, and help more people find affordable housing options.