TechHub-based FlatClub has raised $1.5 million in new investment to fund the growth of its short-term rentals business for elite university students and alumni.
The London-based company, which was formed back in 2010, sees the new investment come as part of a joint venture from MLC50, Professor Eli Talmor of London Business School and David Wolfe of BrandJourney and InterCapital.
“Our business has been built on creating trusted networks within which our members can rent and let properties with genuine peace of mind. This investment, coupled with the wealth of experience and guidance from our new investors, will help us extend this successful ‘model of trust’ into other cities around the world and more trusted networks and take FlatClub to new levels,” said co-founder Nitzan Yudan.
FlatClub will use the new investment to increase the amount of listings from 10,000 to 30,000 rooms and apartments that can be rented for stays of up to 12 months. The company will also be able to implement a new technology platform to help it push ahead with expansion into Europe and the US.
FlatClub acts as a service that allows home or apartment owners to offer short-term rentals within trusted networks. It works by letting the property owner select the users that can see the listing and limit it to alumni from specific universities, employees of certain firms, or friends of friends.
“I instantly recognised a successful business model when I first came across FlatClub – facilitating short-term rentals to a globalised professional community. Nitzan identified a niche, created a solution and has demonstrated that this is a fast-growing market with an appetite for FlatClub’s services,” said Wolfe as he also takes up a seat on the company’s board.
There are already 50,000 verified users that have signed up to the service with feature properties submitted by alumni from 50 of the world’s most renowned universities.