REAL ESTATE: Garantme raises €4M from Bpifrance, Axeleo Capital and NewAlpha

Paris, September 3, 2020 – Garantme, a digital platform offering a rental deposit solution to prospective tenants, has just completed a €4 million round of financing (Series A) from the funds New Alpha Asset Managementand Axeleo Capital, new entrants, the Fonds Ambition Amorçage (F3A) of the Programme d’investissements d’avenir (PIA), managed on behalf of the French government by Bpifrance, which already has a stake in the company’s capital, and their bank lenders. This new fundraising is intended to support the development of its rental insurance services, aimed at individuals and professionals. Launched in 2017, the startup has already enabled more than 15,000 prospective tenants to rent, by offering them a rental guarantee that both consolidates their file, and secures the landlord by protecting him or her against the risks of unpaid rent. Garantme is taking a new step forward by also targeting businesses, with the launch of GarantmePro, its guarantee dedicated to companies seeking new premises. In order to target this new market, Garantme plans to develop specific products and services, which this fundraising will support.

Fundraising to support the mobility of 10,000 VSEs/SMEs by 2022

Thanks to this new €4 million financing, Garantme intends to consolidate its historical activity of guaranteeing individual tenants, but also to accelerate the development of its offer dedicated to professionals, GarantmePro, by launching new insurance products specifically dedicated to VSEs and SMEs for the rental of their commercial premises and/or offices:
– A guarantee ;
– A guarantee against unpaid rent.

Launched in March 2020 by the startup, GarantmePro is a service specifically dedicated to companies looking for new premises. This insurance system, identical to the one operated on residential real estate, allows them, via the digital platform, to be bonded in a quick and simple way by:
– Helping them design their rental file (from information gathering to the collection of supporting documents);
– Certifying the documents and verifying the solvency of the company by means of a unique and three-dimensional algorithm observing the macroeconomic, balance sheet and financial risks of the structure;
– And by assisting lessors in the management of unpaid rent.

Through the strengthening of this specific component, Garantme aims to provide a simple and effective response to the challenges of mobility for companies faced with the need for significant cash advances (Guarantee on First Demand – GAPD) and often problematic for small structures that would like to devote more to their development. The startup plans to guarantee more than 500 companies in 2020, 3,000 in 2021, to reach 10,000 guaranteed companies in 2022.

…and establish itself as the leader in digital real estate insurance

Launched in 2017, Garantme has already bonded more than 15,000 prospective tenants for the equivalent of more than €150 million in annual rent. This new stage of financing is intended to enable the company to change scale by developing both its portfolio and its teams.

Thus, the startup, which aims to achieve a turnover of nearly €20 million by 2022 (vs. €2.2 million in 2019), plans to:
– Multiply its workforce by 4, from 20 to 80 employees.
– Support 40,000 customers (individuals and professionals)
– Build a network of 3,000 partners (real estate agencies and student residences)

The startup also plans to devote a large part of the funds raised to technological investments that will enable it to increase the degree of automation and integration of its services with real estate professionals. Garantme is developing APIs (Application Programming Interfaces) that allow its partners to use its tools for filing and analyzing rental files and issuing guarantees directly from their web platforms or business software.

“Over the past 3 years, we have developed a solid network of partners, notably real estate agencies and student residences, which has enabled us to work with tenants and landlords in complete confidence, accompanying them in a simple and serene manner in the real estate rental process. This round of financing represents an important new step for Garantme. It will allow us to accelerate our technological development so that we can structure and offer all our partners in the real estate industry smooth, efficient and integrated bonding solutions! “, comments Thomas Reynaud, co-founder of Garantme.

“Since our first investment in 2018, the Garantme team has demonstrated an impressive ability to execute suggesting exceptional growth potential and the market feedback has been extremely positive. We are very pleased to renew our confidence in Garantme’s management and its strategy, as part of this second round of financing, which should enable the company to move up a gear and become a French leader in rental property insurance,” comments Clarisse Blandin, Investment Director at Bpifrance’s Digital Venture division.

“Garantme responds to the need for liquidity in real estate assets, in a context where demand is moving more and more frequently, which requires more flexibility in both the residential and commercial sectors. Garantme’s technological tools facilitate the analysis of lessee profiles, while removing the administrative burden of the traditional guarantor model, allowing lessors to adapt their model to these profound changes”, Mathias Flattin, Managing Partner of Axeleo Capital.

“GarantMe has quickly demonstrated its ability to modernize and develop rental insurance offers that meet the needs of landlords and tenants in a context of real estate market tension, while reducing inequalities and discrimination. With its excellent execution and the building of strong relationships with a large network of real estate professionals, we believe the company is well positioned to become a leader in this growing market. This investment in a company with an inclusive Insurtech offering and strong growth is a perfect fit with the investment strategy of our Fintech and Insurtech VC fund”, Lior Derhy, Managing Partner of New Alpha Asset Management.

________________________________________

About Garantme
Launched in 2017 by Thomas Reynaud and Émile Karam, Garantme is a digital platform offering prospective tenants, and VSEs/SMEs (via GarantmePro) a guarantee solution necessary for the rental of their future home. Garantme ensures the veracity of the supporting documents and the solvency of the applicant in 24 hours, consolidates the rental file and secures the landlord. The latter is thus insured against any unpaid rent. Garantme simplifies and accelerates the process of joint and several guarantees and is a reassuring solution for tenants, landlords and real estate professionals alike. Since its launch, Garantme has already guaranteed nearly 8,000 private tenants, for the equivalent of more than 80 million euros in annual rent.
In 2020, Garantme raised €4 million to support the development of GarantmePro, its insurance product for businesses. Garantme currently has a team of 25 people.

www.garantme.fr/

About Bpifrance and the Ambition Amorçage Angels Fund (F3A):
Bpifrance’s equity investments are operated by Bpifrance Investissement. Bpifrance finances companies – at every stage of their development – with loans, guarantees and equity. Bpifrance supports them in their innovation and international projects. Bpifrance also ensures their export activity through a wide range of products. Consulting, university, networking and acceleration programs for startups, SMEs and ETIs are also part of the offer proposed to entrepreneurs.
Thanks to Bpifrance and its 50 regional offices, entrepreneurs benefit from a close, single and efficient contact to help them face their challenges.

Launched in 2016 and endowed with €50M, the Ambition Amorçage Angels fund (F3A), managed on behalf of the State by Bpifrance as part of the Future Investment Program (PIA), is designed to co-invest with business angels in young innovative digital companies at the seed stage and with strong growth potential.

www.bpifrance.fr – https://presse.bpifrance.fr/ – Follow us on Twitter : @Bpifrance – @BpifrancePresse

About the Future Investments Program
The €57 billion Future Investment Program (PIA), managed by the General Secretariat for Investment (SGPI), was set up by the French government to finance innovative and promising investments in the country, in order to increase France’s potential for growth and employment. Since the launch of the PIA, the State has co-financed several thousand projects to prepare for the future. Part of this €10 billion future investment program is part of the €57 billion Grand Plan d’Investissement (GPI) newly launched by the Government in 2017 and carried out throughout the five-year period, in order to support structural reforms and meet four major challenges for France: carbon neutrality, access to employment, competitiveness through innovation and the digital state.

More information on the SGPI website – Follow us on Twitter : @SGPI_avenir

About Axeleo Capital
Axeleo offers European startup founders a unique support framework combining equity investment through its VC funds, a tailored acceleration program and an ecosystem of over 100 high-level partners and mentors.

Axeleo is committed to the startups it supports, from seed to Series B – accelerating them from market entry to internationalization. Axeleo Capital, an AMF-approved management company with €80M under management, has in its portfolio recognized startups such as Alsid, Jenji, Joko, 365 Talents, Hyperlex or Trustpair.

www.axeleo.com

About New Alpha
New Alpha Asset Management is an asset manager specialized in identifying, investing in and supporting high-growth entrepreneurial companies and offers its French and international institutional investor clients investment solutions in three asset classes: active equity management, absolute return strategies and private equity.
Building on its experience in identifying and supporting high-potential entrepreneurial projects, New Alpha Asset Managementhas been developing a private equity investment activity in sectors with a strong technology component since 2015. In 2015, New Alpha Asset Managementlaunched the first French Venture Capital fund dedicated to FinTech, and then expanded its expertise in 2017 by recruiting a team specialized in Growth Equity.
New Alpha Asset Managementmanages and advises over €2 billion as of December 31, 2019. A subsidiary of La Française, New Alpha Asset Management is subject to the regulations of the Autorité des Marchés Financiers (AMF).

Translated with www.DeepL.com/Translator (free version)

Last news

Emergence selects the innovative fund Oddo BHF Artificial Intelligence for its “Techs for Good” sub-fund

Emergence, a fund that accelerates the development of entrepreneurial asset management companies, has made the third investment in its Techs for Good sub-fund and is contributing €20 million to ODDO BHF Asset Management for its ODDO BHF Artificial Intelligence fund. Emergence’s investment committee selects an innovative thematic fund that invests in international listed companies of […]

9 November 2022

Neat raises €10M and marks the largest seed round ever in the embedded insurance industry

Neat raises €10M and marks the largest seed round ever in the embedded insurance industry Neat creates turnkey embedded insurance solutions for retailers and e-merchandisers. The start-up enables sellers to offer their customers innovative and tailor-made products to protect the goods and services sold. Its mission is to promote a more sustainable consumption and extend […]

21 October 2022