Dallas-based proptech startup Stellar announced $20 million in Series B growth equity financing in a round led by new investor Weatherford Capital and supported by existing investors Brick & Mortar Ventures, S3 Ventures, Alerion Ventures, and Navigate Ventures.
Founded in 2016, Stellar is a venture-backed, technology-driven marketplace that aims to solve maintenance at scale for the single-family rental market.
The funding news comes on the heels of Stellar boosting its technology via the October appointment of former Facebook executive Renaud Casanova as the company’s new chief technology officer.
“We have caught lightning in a bottle,” Stellar Founder and CEO Dustin Marx said of the new raise on LinkedIn, adding that it will “accelerate our mission of delivering hassle-free maintenance done right. We love enabling property managers and contractors to successfully resolve home maintenance issues that give residents peace of mind.”
“This funding will allow us to meet the rising demand for our maintenance marketplace, evolve into more agile technology including a new mobile app, and expand our talent and market reach,” Marx added in a statement. “We’re uniquely positioned in this extraordinary macro-economy to create a revolutionary marketplace that thrives and provides new opportunities for SFR stakeholders, enabling them to experience home maintenance that is fast, frictionless, and done right.”
Stellar partners with property managers and contractors to resolve home maintenance issues without the hassle. We get the best tradespeople on the job to deliver an elevated resident experience for rental properties. It’s a scalable solution that takes care of homes and people.
$35 million in total venture capital
The new funding round brings Stellar’s total venture capital to $35 million and will be used to enhance the company’s technology and platform, invest in new talent, and expand into more U.S. markets.
Stellar said its mission is to increase asset value, reputation, and retention to build thriving businesses and communities.
The company said it melds technology with an intimate knowledge of property maintenance to solve the challenges that residents, property managers, and contractors collectively face, and now serves 10 of the 11 largest SFR operators across more than 150,000 properties.
Stellar said the new equity financing round will help it enhance its platform, which leverages artificial intelligence and machine learning to enable property managers and contractors to successfully resolve home maintenance issues, giving residents peace of mind.
Unlike local contractors, Stellar uses technology to make the maintenance experience seamless, simple, and scalable, the company said, with the work’s quality guaranteed.
Plans to double staff by end of 2023
Stellar said that it will invest in new talent and plans to grow its staff by nearly 100% by the end of 2023 in the areas of operations, sales, marketing, and technology. “We’re on the hunt for exceptional talent in both DFW and the Bay Area,” Marx wrote on LinkedIn.
An expansion of the U.S. market is also in the offing, the company said.
Stellar added that in conjunction with the financing, David Seider, principal at Weatherford Capital, has been appointed to its board of directors, effective at the closing of the investment.
Seider brings a long history of tech solutions impacting complex and regulated industries because of his board and adviser roles with Branch, High Definition Vehicle Insurance, and The Zebra.
“As a firm focused on backing high-quality leaders who manage rapidly growing B2B technology companies, we have a keen eye for identifying startups solving real problems in the market,” Seider said in a statement. “Stellar’s impressive growth, combined with a rising number of U.S. households choosing to rent instead of owning a house, underscores the company’s position as a market leader. We’re proud to align with them on this next phase of growth to continue to solve challenges across the property lifecycle.”
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