Garentii, a Germany-based security deposit replacement insurance MGA, has raised €1.9m in seed funding led by Greenlight Re.
The round also saw Innovations Elkstone participate, alongside private investors from tier 1 global financial institutions.
Garentii’s mission is to “change the future of renting.” The company said billions of euros are locked up in cash deposits from tenants every year, leaving millions of renters without options.
With Garentii’s deposit insurance, renters can pay a small amount a month, as little as €3, increase of the thousands often required upfront when moving in.
This way, Garentii said tenants can save and landlords still get complete coverage on their properties.
Michael Hazoume, CEO and co-founder, said, “Our mission is to provide people with the choice to live where they want, free from the burden of a cash deposit. We believe blending technology and insurance services can be a force for good.”
On a similar quest is TheGuarantors, which raised $50m in Series C funding recently. TheGuarantors offers two flagship products, Lease Guarantee, which is a tech-enabled tenant default protection product allowing renters to qualify for the unit they want, and
Security Deposit Replacement, which acts as a direct and highly affordable substitute to a cash security deposit. Both products aim to improve rent affordability by unlocking the amount of money that is locked away in security deposits.
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