Elkstone Partners backed Munich start-up Garentii’s platform, which aims to reduce the admin burdens around deposits on landlords. It will launch in Europe in the coming months.
Dublin-based Elkstone Partners has invested in Munich insurtech and proptech start-up Garentii.
Elkstone joined other private investors from Germany in investing in Garentii’s seed funding round ahead of its market launch. The €1.9m round was led by Nasdaq-listed reinsurer Greenlight Re’s Innovations arm.
Garentii will launch initially in Germany in June. It plans to launch in other countries later this year. The start-up aims to digitise the process of deposit management through its platform. It will use its funding to further grow its operation, which was founded last year.
In Germany, the company wants to use its digital security deposit insurance to ‘unfreeze’ the money that sits as cash deposits in bank accounts across the country, which it says is around €30bn.
With Garentii, instead of three months’ rent in a cash deposit, renters will pay a monthly fee starting at around €3. The platform aims to replace traditional rental deposits, allowing landlords to manage all their deposit policies in one place without administrative burdens.
According to Garentii’s CEO and co-founder, Michael Hazoume: “Paying [a] cash deposit is just not fun. It is one of the most inefficient use of capital for renters and an admin burden for landlords.”
Commenting on Elkstone’s investment in the Munich-based start-up, Alan Merriman, CEO and co-founder of Elkstone, said: “Garentii has the potential to tackle the inefficiencies of the rental market and lower the barrier to renting for both landlords and renters.
“The Garentii team has a deep understanding of the real estate market and has built the digital platform it needs to execute on its mission to disrupt the rental system across Europe. Elkstone is proud to support this team in its journey to realising this vision.”
Elkstone has also recently invested in Galway-based medtech company Luminate Medical, which is expanding its R&D operations. Luminate Medical raised more than $5m in grant financing and a seed round investment, co-led by Elkstone, SciFounders and Faber VC.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.