Stake, which provides banking services for renters, has raised $12m in Series A funding.
The round was led by RET Ventures, with participation also from Enterprise Community Partners, Hometeam Ventures, Operator Stack, and Second Century Ventures. Existing investors Shadow Ventures and Olive Tree Ventures also participated in the round.
Founded in 2018, Stake aims to empower renters by providing them with cash back on their rent as well as no-fee banking services to build savings. With Stake, property managers receive a 130% return on every dollar spent. Renters earn an average of 4% cash back on their rent each month.
The company also said it mitigates pain points for building owners, increasing lease-ups, reducing economic vacancy and improving maintenance.
With the new funding, Stake will continue building out its financial infrastructure and suite of solutions that address difficult issues for renters and property owners alike.
Rowland Hobbs, co-founder and CEO of Stake, said, “Renters don’t need more debt or loans. What renters need is money to help with everyday essentials and to establish long-term savings. With Stake, we have reimagined the classic ‘rainy day fund’ for renters to build the sort of wealth traditionally associated with home ownership. Now, their largest expense is also their largest source of savings.”
Another FinTech looking to empower renters, TheGuarantors, recently raised $50m in Series C equity funding.
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