Stake is a fintech startup built to “empower wealthier, happier renters” with the noble aspirations of solving today’s affordable rent problem through its Return on Rent cloud offering. This unique property management software is meant to optimize the relationship between landlords and tenants, through a programmed renter reward system.
Stake has exploded in the past year with 10x year-over-year growth, with an unbelievable 30% monthly expansion since its Seed round in September of 2021, and is now generating annual recurring revenue (ARR) of more than $2 million.
The $12 million Series A round that Stake closed at the end of Q2 2022 (led by RET Ventures, an emerging VC in the future built world), will be used to scale & improve its platform (leveraged on by roughly 20,000 households today), and allow for more strategic hires with the goal of increasing its workforce from 17 to 23 by the end of this year.
The risk of losing a lessee has never been higher with rent prices soaring alongside interest rates (temporarily hindering home buying), and landlords are weighing the optimal benefit of raising prices vs. the cost of losing a tenant. According to GlobeSt.com, nearly 2/3rds of individuals facing a rent hike are considering moving, and with 95% of US units seeing an increase, apartment churn is going through the roof.
Stake allows property owners & operators to provide renters with cash-back rewards for things like consistently paying on time, and early renewals, and can be personalized based on both the property and the individual (Stake compiles profile data for future reference). Those who rent with Stake earn an average of 4% cash back on their rent.
At the same time, Stake’s Return to Rent system would ostensibly save property owners on tenant turnover and offers a growing number of digital cost-cutting solutions, and the profile database on renters the business is compiling could be an enormous asset to landlords.