Los Angeles-based proptech firm Snappt, which offers fraud detection for property managers, has secured $100 million in Series A funding to continue to accelerate product development, increase sales and marketing efforts, and expand market reach. Led by New York-based global private equity and venture capital firm Insight Partners, the Series A funding follows a year of rapid growth for the firm, which saw apartment unit and revenue growth of 700%.
“Our vision is to dramatically lower the number of fraudulent tenant applications that go undetected, helping our customers save millions in eviction costs and minimize risk,” said CEO and co-founder Daniel Berlind. “Insight Partners’ alignment with this vision will enable us to scale and continue the momentum.”
Over 1,000 multifamily communities as well as four of the nation’s top five property management firms use Snappt. Its software helps property managers screen tenant applications and detect when financial documentation, such as paystubs and bank statements, have been altered. According to the firm, with 1 in 8 applicants committing application fraud, this solution can help property managers avoid bad debt and costly evictions as well as keep out high-risk residents. Last year alone, Snappt helped its clients avoid more than $105 million in bad debt.
“Snappt’s ability to detect forged documents is revolutionizing the rental screening process. Their solution addresses the biggest challenge for today’s property manager—lowering eviction rates and thus reducing bad debt,” added Thomas Krane, managing director at Insight Partners. “Snappt has the right mix to become a major force in the real estate market: an experienced leadership team with a proven track record in the property management sector, a highly unique software solution, and a viral product-market fit. We look forward to partnering with Snappt as they continue to grow.”