Scottsdale-based Lessen, a marketplace platform that connects property owners to service professionals, announced it closed a $35 million Series A funding round.
The Series A was led by Fifth Wall, the largest VC focused on technology for the global real estate industry. Khosla Ventures, General Catalyst and Navitas Capital, who invested in Lessen’s seed round, participated again in the Series A.
Funding from this round will be used to fund new technology products, support new field operations teams, and facilitate market expansion.
Lessen works similarly to Angie’s List, but Lessen is designed specifically for investment property owners. By using Lessen, landlords and owners are connected to a network of professionals who perform maintenance, cleaning, and renovation services, among others. They no longer go through the headache of finding and scheduling service professionals to take care of their properties.
In the words of Lessen founder and CEO Jay McKee, the company is thrilled “about building a platform that will enable service professionals to increase earnings and reduce stress, while allowing property owners to lower their costs and completely outsource property management concerns.”
The platform has more than 1,000 service providers across 26 markets, who have completed more than 2,000 jobs for property investors.
“We’re ecstatic about partnering with a team of world-class investors to build and grow the future of real estate property services,” said McKee in a statement. “The industry is poised for a revolution in the way that property services are performed, delivered and managed at scale.”
Dan Wenhold, a partner at Fifth Wall who will join Lessen’s Board of Directors, said Lessen stands alone in its approach in offering a streamlined solution to property services.
“The pandemic has supercharged growth in the single-family rental market, with no sign of slowing down, yet landlords lack the technology needed to effectively manage maintenance across their portfolios at scale,” said Wenhold in a statement. “We believe the opportunity for Lessen is massive, and we’re thrilled to support the company through this next phase of its evolution and beyond.”
This Series A round brings total capital investment in Lessen to $44 million.