Real estate technology company Blueground has announced the closing of a $50 million Series B round. The round was co-led by two prominent investment firms: WestCap Investment Partners and Prime Ventures. WestCap's founding partner, Laurence Tosi, is an experienced investor and operator, who served as the long time CFO of private equity firm, Blackstone, and subsequently, as the CFO of Airbnb.
Blueground envisions a world in which people can feel at home wherever they choose to live. The company creates that experience through beautifully designed, tech-powered apartments for stays ranging from one month to a year or longer. With this new round, Blueground will increase resources to further develop its proprietary technology, product design, guest experience, and further expand its presence in both the United States and Europe. The expansion begins with the launch of London, Paris and Seattle by year end 2019, and position Blueground to reach its 2023 target of serving guests in over 50 cities globally.
"The idea of one's home being a fixed, long-term commitment is changing as more people around the world are choosing to live in multiple cities for work or other reasons. Our guests get unprecedented convenience and flexibility with the ability to just show up and start living on day one in beautifully designed, tech-powered apartments," said Alex Chatzieleftheriou, CEO and Co-Founder of Blueground. "For property owners, partnering with Blueground is an ideal solution. We offer a steady yield, 100% guaranteed occupancy and manage all the work on their behalf to enable a seamless guest experience. We are excited to expand our relationships with leading developers and property managers across the world."
To date, the company has built a portfolio of more than 2,800 apartments in nine cities around the world. With this Series B round, Blueground has now raised a total of $78 million in equity funding. Previous financing included investments from well-established funds such as VentureFriends, Endeavor Catalyst, Jabbar Internet Group and AlleyCorp. In January of this year, Blueground named the well known New York City-based entrepreneur Kevin Ryan, CEO of AlleyCorp, to its Board of Directors. 2019 has marked a banner year for Blueground, as the business has achieved 3X YoY revenue growth and surpassed 1 million+ nights spent by guests.
"WestCap is pleased to partner with Blueground as it continues to execute on its proven strategy of disciplined growth. Blueground's ability to pair an outstanding guest experience with best-in-class capital efficiency will serve to increasingly distinguish the disruptive business in this fast-paced ecosystem."
— Charlie Young, Partner at WestCap
As part of the round, Charlie Young will join Blueground's Board of Directors.
"Through leveraging the power of technology, Blueground has developed a unique value proposition and approach to this emerging space in the market. We are impressed by what the team has achieved to date, and look forward to helping lead this new chapter of the real estate industry."
— Nick Kalliagkopoulos of Prime Ventures
As part of the round Nick Kalliagkopoulos will join Blueground's Board of Directors.
Blueground focuses on high-quality, residential real estate in the most vibrant markets globally, sporting a strong-track record leasing apartments from individual to institutional owners and property management companies such as Related Rentals, UDR, and Pinnacle Living.
For guests, Blueground offers a completely turnkey living solution. Every Blueground apartment is intentionally designed and includes premium furnishings, high-speed WiFi, luxury linens, and everything needed to simply #ShowUpStartLiving. Blueground's vetted guests have access to ongoing support through the Blueground app; the app provides digital access to a broad suite of value-added services such as cleaning, maintenance, and an easy relocation function that allows guests to experience new apartments in different neighborhoods and cities on demand.
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