New York-based startup, Promise, has completed a $20 million Series A funding round to continue their mission of bringing affordable housing to communities in need. Promise is an online real estate platform that connects renters who qualify for affordable housing with landlords who provide those opportunities. Since launching in 2015, the company has created partnerships with various landlords, foundations and developers of affordable housing properties. Their platform helps potential renters apply for affordable housing and streamlines the leasing process for property managers. The company announced on November 1st that they had closed the Series A funding round with new investors Formation8 and SoftBank Vision Fund as well as existing investors Red River Ventures, Great Oaks VC, and Upfront Ventures – all private equity firms known for investing in emerging technology companies. This new round of capital will be used to support expansion into new markets and drive continued product development.
What is Promise?
Promise is a real estate platform that helps renters apply for affordable housing and streamlines the leasing process for property managers. The company’s online application connects renters with local affordable housing opportunities that match their specific needs and preferences. Once potential renters have applied for a specific housing opportunity, Promise’s software integrates with the property management system and allows the property manager to easily collect information from each applicant, track application statuses, and facilitate communication among all parties involved.
Why is affordable housing so important?
Roughly a third of American households are cost-burdened, meaning they spend more than 30% of their income on housing. The situation is even more dire for low-income and minority groups, who are at a higher risk of being cost-burdened. Housing instability often leads to other social issues like food insecurity, poor health outcomes, and children who are more likely to drop out of school.
How does Promise make affordable housing easier to find?
Promise’s online application gathers information about potential renters’ financial situation, household composition, and preferences for location and type of housing. The company’s software then matches the data collected with local affordable housing opportunities that are listed on their website. Promise helps renters easily apply for affordable housing by providing a standardized application, compiling any necessary documentation, and communicating with property managers on behalf of the renter.
What makes Promise different from other real estate platforms?
While many real estate platforms have recently expanded into the affordable housing space, Promise is unique in that their focus is on renters who qualify for affordable housing. Promise’s platform is designed to be used by both renters and property managers. Renters can apply for affordable housing opportunities directly through the Promise website, and property managers can use the software to track applications, communicate with applicants, and view reports on the progress of their leasing cycle.
The need for affordable housing is at an all-time high, and the real estate industry is responding by expanding offerings to include affordable options. While many real estate platforms have recently expanded into the affordable housing space, Promise is unique in that its focus is on renters who qualify for affordable housing. Promise’s platform is designed to be used by both renters and property managers, which is helpful for all parties involved. This new funding round will allow Promise to expand into new markets and drive continued product development.