Co-living startup Bungalow raises $47 million, including investment from Alex Rodriguez

Mortgage & Real Estate

Real estate startup
Bungalow launched last year, offering a unique solution for finding
affordable housing in some of the nation’s largest and most expensive housing
markets.

At the time, the company launched with $14 million in funding. Now, more than a year later, the company has raised more than three times that much, and one of its new investors is a name that will grab some headlines.

Included among the investors in Bungalow’s $47 million
Series B funding round is A-Rod Corp.,
the investment firm founded and led by former MLB star Alex Rodriguez.

According to Bungalow, A-Rod Corp. acted as a “strategic”
investor in its Series B round along with CAA
Ventures, the early-stage venture capital arm of top entertainment and
sports agency Creative Arts Agency.

Leading the investment was Founders Fund, led by General Partner Keith Rabois. Founders Fund
previously invested in the company, also taking part in its Series A funding round
last year.

Also participating in the Series B funding round was Coatue, let by partner Matt Mazzeo,
along with the company’s previous investors, including Khosla Ventures, Atomic VC,
Cherubic Ventures, and Wing Ventures.

Bungalow offers co-living, but instead of co-living in an apartment
building, Bungalow renters co-live in a house. The company pairs “early career
professionals who need a home in booming cities” with homeowners who own the
“existing, outdated housing supply” to solve a problem for both.

The company takes older homes and “repurposes and
redecorates” them for what today’s renters want. The company then vets and
matches renters together to serve as housemates in the fully rented-out house.

Last year, the company soft-launched in New York City, the
San Francisco Bay Area, Los Angeles, and Seattle, before expanding to Portland,
Washington, D.C., and San Diego.

Bungalow is also now available in Chicago, Philadelphia, and
Boston.

According to the company, Bungalow has now served more than
3,200 residents and 730 homes in 10 markets.

The company states that it is on track to scale the business
to more than 12,000 residents by the end of 2020 and plans roll out new tech
capabilities as it expands to “three new major metro areas” in 2020.

“We are grateful to all the incredible people — from
residents to homeowners to our business partners — who have believed in our
mission and we’re thrilled to help thousands more residents find great homes
and even better roommates as we grow,” the company said in a blog post
announcing the capital raise.
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