Nomad, a Denver-based company that offers small, owner-operated rental companies and single-family landlords guaranteed rent for up to three years, has secured $20 million in Series A funding a year after its seed round, it was announced this week.
The money is intended to push the company into 10 new markets within the next two years and advance the development of technology it uses to deliver services. Nomad is eyeing Raleigh, North Carolina, as its next market, which has been one of the nation’s fastest growing regions for close to a decade.
The investment was led by Silicon Valley Bank Capital. Current investors, Kickstart Fund, Peterson Ventures and Range Ventures, also contributed.
Nomad’s model is designed to support small-business landlords, those who handle most facets of running multi-family investments and are often plagued by prolonged vacancies, economic turbulence and slow turns. (A “turn” is the process of getting an empty unit ready for the next tenant.)
Nomad ensures its clients are paid on the first day of each month. The company also provides its landlords with tech-forward tenant marketing and leasing services, as well as full-fledged property management as additional paid services.
Tenants can also engage Nomad for direct financial assistance, such as advances on rent simplified lease terms and, when the time comes, closing cost coverage on a first home purchase.
“Nomad also bolstered its offerings by adding more financial products for rental owners such as rent advance, rewards for tenured residents, and brokerage services that enable customers to buy, sell, rent, and manage with Nomad’s support,” the release stated.
Nomad’s first market was Phoenix, a common starting place for proptechs. It also operates in Colorado.
The company claims it has experienced revenue growth of 8x in 2021 and covers rent for properties worth more than $250 million in total.
Money continues to flow into the rental market, both in terms of lease rate and industry-supporting technology. Sunroom, a leasing technology startup, secured $11 million last year, Zumper has pocketed close to $100 million, and Rentable, an online apartment listing service, recently raised $22 million.
The housing market’s seemingly perpetual surge is pushing more would-be homeowners into leased occupancy situations, opening opportunities for proptech entrepreneurs and venture capital to enter the market.
Nomad’s funding will also fuel the hiring of at least 50 more people, the company said in the release.
“No one has a crystal ball, but guaranteed rent allows landlords to operate on sure footing and with access to the benefits of scale that usually only belong to massive single family rental corporations,” PJ O’Neil, Nomad CEO and co-founder, said in a statement. “Individual landlords make up the majority of the single family rental market, and Nomad exists to solve their single largest pain point, uncertainty.”