Insurtech platform for real estate LeaseLock has raked in $52m in a Series B funding round to expand its lease insurance product for enterprise real estate.
The funding round was led by London-based Westerly Winds and Wildcat Venture Partners.
Other major investors who participated in the round include SoftBank, Vertex, Liberty Mutual, American Family Ventures, Moderne Ventures, Strata Equity, Veteran Capital, and Mucker Capital.
US-based LeaseLock will use the fresh capital to expand its lease insurance offering into its first artificial intelligence (AI)-powered real estate fintech platform.
The company uses property management system and data scient to create a fintech platform for housing operators.
So far, LeaseLock has insured $1bn in leases to date.
Its customers include Greystar, Cushman Wakefield, Avenue5 Residential, Harbor Group, LMC, RKW Residential, Goldman Sachs, ColRich, GoldCor, Olive Tree, TruAmerica, White Oak, Trinsic, and Goodman Real Estate.
LeaseLock co-founder and CEO Derek Merrill said: “We deploy our product directly through enterprise property software systems which drives a material data and product delivery advantage.
“We are doubling-down on our core deposit replacement product, while investing in new insurance lines, payment and receivables technology, and market channels.”
LeaseLock president and co-founder Reichen Kuhl said: “The market is shouting for a better solution to upfront housing costs that serves both the renter and the operator.
“Our technology platform completely removes friction, cost, and regulatory risk from our customers’ operating infrastructure and P&L.”
SoftBank Ventures Asia partner Sherman Li said: “As we surveyed the market landscape, LeaseLock stood out as the only company to truly develop a new insurance technology product—leveraged by AI—to deliver a financially sound and impactful solution.”
Westerly Winds founding partner Karim Abdel-Ghaffar Plaza said: “Security deposits are an inefficient financial instrument for all sides. Through technology, LeaseLock has intelligently solved this problem while setting the foundation for an end-to-end enterprise insurtech platform.”
Recently, health insurtech Sidecar Health, also based in the US, raised $125m through its Series C funding round, bringing its valuation to $1bn.