The continued strength of the residential market was shown on Tuesday as walk through, a rental property management software proptech startup, announced that it has closed a $20 million Series A funding round. The round follows a $10 million seed round that closed in September 2021.
The Series A funding was led by Alpine Software Group (ASG), a portfolio company of Alpine investors, which buys and builds vertical SaaS companies. DoorLoop has expanded to more than 50 employees in the past year and claims 400 percent revenue growth.
DoorLoop Co-Founders, CEO Ori Tammuz and marketing director David Bitton, are no stranger to ASG. They co-founded Practice Panthera lawyer management software company, which ASG acquired in 2018.
“DoorLoop has a proven team and playbook,” said the ASG CEO Steve Reardon. “We have worked with David and Ori for years and are delighted to continue to be part of their story. We see a great future in the proptech SaaS industry.”
The latest funding will be used in development, marketing and recruiting, Bitton said.
“A big part of it is growing the team, quadrupling the development team, doubling the sales and customer service teams, growing all these key positions that are needed,” said Bitton, whose company which claims it can automatically collect rent, grow landlords’ business and make businesses more efficient. “We always want to provide world-class support. No competitor offers live chat. Right now we can offer a kind of live chat. [Customers] get answers in less than four minutes. We want to cut it down and make it less than a minute.”
Some of the DoorLoop interfaces. Image; walk through
Another use of the funds will be to increase the company’s “brain awareness,” Bitton said. “That’s the marketing piece: continuing to expand the market segments we’re targeting and investing more in marketing and advertising.”
Miami-based DoorLoop’s ability to grow rapidly since its founding in 2019 is due to a relentless emphasis on customer service and considerable advertising spending to attract small and medium-sized landlords to the platform, he added Bitton.
“We invested very early in pay-per-click advertising with our seed money, including Google ads,” he said. “It was the only way to get your word out without having any SEO [search engine optimization]. So we had to pay a lot of money to raise awareness. Then, over the last year and a half, we’ve published over 1,000 pieces of content on our website: resources, forums, downloads, templates, blogs. We want property owners and managers to come to DoorLoop for all their resources. Over 200,000 people visit our blog every month now.”
Also, owner training helps set DoorLoop apart from competitors, Bitton said.
“New owners love us because we take the time to give them unlimited free support,” he said.
“No competitor offers this. We also train them in property management, like being a first-time homeowner. We give them free, unlimited accounting advice. No one else does it for them, which is why our reviews are so high online” .
DoorLoop has “tens of thousands of property owners and managers in more than 100 countries, mostly in the United States and Canada,” Bitton said. While initially focused on residential properties, DoorLoop is expanding into the commercial market, including student housing, HOA communities and mobile homes, Bitton said.
For now, DoorLoop is forgoing profitability to reinvest in its business, Bitton said.
“If customers are happy, they’ll stay with us,” he said. “Nobody bought anything to invest in real estate every month. A lot of times they’ll hold it for five or 10 years, maybe 50 years. After two years we’ll start making our money back. If they’re with us for five or 10 years, we’re happy and they are happy”.
DoorLoop is priced for small landlords at $49 per month for properties of one to 20 units, increasing with the number of units on the platform, Bitton said. “We want it to be a very low barrier to entry to get started. As you grow, we’ll grow together alongside you.”
Philip Russo can be reached at prusso@commercialobserver.com.
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