Standby Deposits Secures $5.3 Million to Redefine Rental Deposits through an Innovative Credit-based Solution
Standby Deposits , a pioneering New York-based start-up, is set to transform the rental market with its innovative and cost-effective alternative to traditional security deposits.
Standby Deposits, a pioneering New York-based start-up, is set to transform the rental market with its innovative and cost-effective alternative to traditional security deposits. The company has successfully raised $5.3 million in seed funding, backed by leading investors Brunnur Ventures and Stodir hf, who endorse Standby Deposits' mission to empower tenants with a more flexible, affordable, and accessible solution.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230419005226/en/
Standby Deposits Co-Founders: Elvar Thormar, Egill Agustsson and Clint Miller (Photo: Business Wire)
Inspired by the way in which credit has revolutionised payments for merchants, Standby Deposits has devised a unique credit-based payment system where renters pay a minimal monthly fee instead of a large upfront deposit. This ground-breaking approach, which is significantly less expensive than current market options, fosters financial inclusivity, affordability, and accessibility to rental housing. With a robust pipeline of property managers, Standby Deposits is poised for a successful Q2 launch, targeting millions of renters across the United States.
Egill Agustsson, Co-founder and CEO of Standby Deposits, expressed his enthusiasm: "We are delighted to have Brunnur Ventures and Stodir on board as we revolutionize the rental landscape with our innovative payment solution. This funding enables us to scale our operations, broaden our reach, and offer a much-needed, cost-effective alternative to millions of renters facing financial hurdles in securing housing."
Arni Blondal, Managing Partner at Brunnur Ventures, added, “We're proud to invest in Standby Deposits, which tackles a major capital inefficiency in rental households with a robust, integrated solution that offers simplified and cheaper housing access for renters. We are strongly supportive of the positive social mission that this also serves at a time of high inflation.”
The $5.3 million investment will fuel Standby Deposits' growth, enhance its technology, and forge more partnerships with property management companies and landlords. The company aspires to become the premier choice for rental deposit alternatives, delivering unmatched support for both tenants and landlords while significantly slashing costs compared to conventional options.
Seamlessly integrating into existing leasing processes, Standby Deposits' solution requires no additional staff training or procedural changes for property managers. It offers the same protection as cash deposits while delivering a more flexible and cost-effective payment method for tenants.
ABOUT STANDBY DEPOSITS
Standby Deposits is a trailblazing New York-based start-up aiming to disrupt the rental market with a novel credit-based payment system for rental deposits, inspired by the ease and adaptability of credit card payments.
By offering a more accessible and cost-effective substitute to traditional security deposits, Standby Deposits strives to empower renters and foster financial inclusivity. The company is dedicated to revolutionizing the rental industry for the benefit of both tenants and landlords through its focus on user experience, technology, and scalability.
For more information about Standby Deposits, visit standby.io.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230419005226/en/