As the summer heats up, so has investment in New York’s tech scene. This month’s top five deals totaled $824 million and named two new unicorns to the marketplace. From a private jet booking service, to a keyless entry product, here are the top five raises from August.
#5, $56 million
What they do: Latch aims to eliminate the need for keys. Its web-based keyless system allows residents to enter their apartments using a smartphone, key card or code. The system is managed through a platform that allows property managers to onboard or offboard residents and share access with staff and maintenance.
The funding: Latch completed its $126 million Series B funding round on August 1. The company chose to raise the money in two parts, first raising $70 million in August 2018 and, as interest in its keyless entry product grew, deciding to raise another $56 million in early August. With this round, Latch plans to add to its team of 200 as well as speed up adoption of its system in other apartments around the country.
#4, $80 million
What they do: Industrious partners with landlords to turn their properties into shared office spaces. It manages the property for the landlord, offering accounting, marketing, legal and other services. The firm claims its managed units earn 90 percent more than they otherwise would.
The funding: Industrious raised $80 million in Series D funding on August 22, bringing total investment in the firm to $222 million. The company plans to use the new funds to expand its property management services, and open an additional 60 locations across the U.S. Some of the funding will also be used to expand internationally to Mexico, Canada and Europe.
#3, $128 million
What they do: Wheels Up aims to reduce the cost and maintenance associated with flying privately. For an annual fee, the platform’s 5,000-plus users can reserve their space in a shared private jet ride or book the flight just for themselves in 24-hour’s notice.
The funding: Wheels Up raised $128 million in Series D funding on August 9, bringing total investment to $536.9 million. The company said the new investment also brought its valuation to $1.1 billion, securing its unicorn status. The new funding will be used for additional acquisitions, to invest in sales and marketing and to scale Wheels Up’s technological and digital platforms.
#2, $160 million
What they do: Better.com launched in 2015, with the aim of streamlining the home financing system. Through Better, users are able to complete the entire financing process online, including title policy and home insurance. Rather than work with a loan officer, home owners are connected to a marketplace of 32 of the largest mortgage lenders. They are able to get pre-approved for loans and lock into an interest rate immediately without any fees.
The funding: Better.com raised $160 million in Series C funding on August 19, bringing total investment in the firm to $254 million. The company plans to use the cash to add more than 400 people to its sales and technology teams by the end of the year.
#1, $400 million
What they do: Knotel launched as a competitor to WeWork in 2016. The company works with mid-level and enterprise businesses to acquire an office space, then designs it to their needs and requirements. After building and furnishing the space, Knotel also helps companies manage their internal operations needs.
The funding: Knotel secured its place as one of New York’s newest unicorns on August 21 after it closed $400 million in financing. The company plans to use the capital to expand into new global cities and invest in its technology.
