Founded in 2017, Frontdesk, the tech-enabled short-term apartment rental startup transforming the way people experience travel, announced it has completed a $6.8 million Series A raise in a combination of debt and equity. This financing comes on the heels of the company’s $2.75 million bridge round, raised in summer 2019.
“Before the coronavirus crisis, we always felt that we had the most supportive investors imaginable,” said Kyle Weatherly, Co-Founder and Chief Executive Officer. “Now we are absolutely certain of it. Not only did they make good on their initial commitment, but they increased it by almost $3 million. This provides us the capital to not only survive the crisis but it will also allow us to accelerate our growth again when travel rebounds.”
Frontdesk’s focus on sustainable growth is another key contributor in helping the company weather the coronavirus crisis. The company is not immune to the effects of the virus, having recently laid off 35 of its 241 employees; however, Frontdesk already sees positive indicators of increased travel demand. The company hopes to rehire those employees, in addition to dozens of new employees, this summer.
“We are opening a new chapter of Frontdesk history,” said Jesse DePinto, Co-Founder and Chief Product Officer. “We may have been the underdog before, but now Frontdesk is positioned to be an industry leader. We would not be here today if it wasn’t for the dedication of our employees, the faith of our investors, and the support of our real estate partners.”
The Comforts of an Apartment with the Conveniences of a Hotel
Frontdesk currently operates in 28 cities with over 500 fully-serviced apartment suites. Unlike vacation rentals, Frontdesk manages the entire guest experience from end to end, from their in-house technology stack to the in-house cleaning operation. Frontdesk proudly boasts an average of 4.8 out of 5.0 guest review score on their over 60,000 stays to date, ranging in length from 1-night to 6-months. Their spaces are on average 3x the size of a typical hotel room, offering more space and comfort to their guests.
“This place was amazing. I’m still impressed with how big it was,” said Frontdesk guest Anna. “The location was perfect, it was close to everything we needed. Communication was spot on and available at any time you needed it. We would go back in a heartbeat!”