With a $52M Raise, LeaseLock Wants to Take the Rent Deposit Hassle Out of Leasing

Breanna De Vera

Breanna de Vera is dot.LA's editorial intern. She is currently a senior at the University of Southern California, studying journalism and English literature. She previously reported for the campus publications The Daily Trojan and Annenberg Media.

With a $52M Raise, LeaseLock Wants to Take the Rent Deposit Hassle Out of Leasing

LeaseLock has made rent deposit-free to renters of hundreds of thousands of apartments owned by companies like Greystar and Cushman Wakefield. It is now also eyeing single family portfolios.

The lease insurance platform closed a $52 million Series B round, and will use the funding to continue supporting the 1.5 million homes it insures, while looking to expand its insurance types to include individual owners.


"We're not playing this as just a deposit game," said chief executive and co-founder Derek Merrill. "[There is] a real need for an insurer tech platform for not just rental housing, but also for [single family housing]."

LeaseLock was founded in 2013 by Merrill and president Reichen Kuhl, who connected through Mucker Capital's accelerator program.

Derek Merrill and Reichen Kuhl are the co-founders of LeaseLock.

Kuhl had been struggling with the rental process in New York, and the pair realized that eliminating deposits could make the payment process smoother for renters that wouldn't otherwise meet the criteria. The company launched in 2016, after they put together an insurance product that would scale for future growth.

"There are almost 50 million apartment homes in the United States," said Merrill. "About a third of those are enterprise and another two thirds are kind-of independent owners. And if you look across all of those, you could ask who would want [to deal with a] deposit in any one of those? And the answer is nobody. So the market is gigantic. And I think we're just scratching the surface."

The Marina Del Rey company eliminates deposit payments for renters by giving them the ability to pay a small monthly fee in addition to their rent. This payment is integrated in enterprise software systems, so that there is no additional paperwork renters have to complete. If any accidental damage to the property occurs, renters are protected through LeaseLock's insurance.

It operates in all 50 states, and has insured $1 billion in leases to date. Over the course of 2020, the number of homes on the platform grew fivefold, to 1.5 million.

There are a few other companies in the deposit replacement market, like Jetty and Rhino, but those are consumer facing and don't integrate into the software landlords used to collect rent.

"When we started pursuing this kind of integrated approach, it really started to set us apart," Merrill said. "Operators just want to get out of the deposit completely. And the only way to do that is to rip it out of your actual software workflows."

The round was led by London-based Westerly Winds and Wildcat Venture Partners. Its other investors include SoftBank Ventures Asia, Vertex Ventures US, Liberty Mutual Strategic Ventures, American Family Ventures, Moderne Ventures, Strata Equity Group, Veteran Capital and Mucker Capital.

LA Tech Week 2024: Monday’s Event Lineup
tech-week

LA Tech Week 2024 kicks off on Monday, October 14, with a packed schedule of events spread across Los Angeles. This opening day offers founders, investors, creatives, and tech enthusiasts endless opportunities to connect, learn, and collaborate. From early morning fitness sessions to afternoon workshops and evening socials, Monday’s diverse programming sets the stage for an impactful week. Below is the schedule organized by location, so you can easily find the events that match your goals and availability.

BEVERLY HILLS

7:00 AM

Andrew Yeung, Blindspot

8:00 AM

Scrappy

9:00 AM

TechWalk, Qapita

12:00 PM

VCPE GROUPS, Entrepreneur.VC

2:00 PM

  • Future of Farming: AI and Indigenous Collaboration for a Sustainable Food System : See Details Here

Celebration Nation Inc

7:00 PM

LightDAO, Mission Matters

CENTURY CITY

6:00 PM

  • KOSME-LAVA Demo Day (Invite Only)

Los Angeles Venture Association

CULVER CITY

9:00 AM

Amazon Web Services (AWS)

Intersections LA

1:00 PM

  • Networking for Underrepresented Founders - Optimize your networking savviness, and have fun along the way : See Details Here

AWS Startups

2:30 PM

AWS

3:00 PM

Family Offices Investors Summit, Sandbox, Soulbound, KIKI, Babylon Voice, CryptoHQ Fund

DTLA

7:00 AM

  • Tech Runs (Invite Only)

Crosscourt

EL SEGUNDO

6:00 PM

Stonegardens Advisory, Demand Signal Ventures

HOLLYWOOD

2:00 PM

  • Brand Positioning + Content Strategy Workshop (Invite Only)

Alpha Wolves Media

6:00 PM

LaFamilia Foundation (VCFamilia), Pivotal Ventures

INGLEWOOD

6:30 PM

  • UCLA Anderson Elevating Voices: A Pitch Competition & Networking Opportunity :See Details Here

Westwood

LONG BEACH

11:30 AM

Starburst Aerospace, Ampaire, Auriga Space, Long Beach Accelerator, Rebel Space, Sunset Ventures, Emerging LA

MALIBU

5:00 PM

Sunstone, Pepperdine University

6:00 PM

Wilshire Lane Capital

MAR VISTA

3:30 PM

Uthana

MARINA DEL REY

3:00 PM

USC, Information Sciences Institute

MID CITY

10:00 AM

The Growth Club

PASADENA

1:00 PM

Emerging LA, Sunset Ventures

5:00 PM

AI LA

PLAYA DEL REY

8:00 AM

AI LA

SANTA MONICA

7:00 AM

PitchandRunLA, Global Venture Network

8:00 AM

Fortify Ventures

8:30 AM

Ganas Ventures

9:00 AM

Tech Breakfast Club

A16z

10:00 AM

Clutch Talent

  • Santa Monica Innovation Hub: Technology Street Fair on Ocean Avenue :See Details Here

City of Santa Monica, StartupStarter, Inc., Downtown Santa Monica, Inc. (DTSM)

  • Sip & Scale (Invite Only)

AMP Beauty

10:30 AM

Socialtrait Inc

11:00 AM

Mucker Capital, LeadrPro, JP Morgan, K&L Gates

12:00 PM

Global Venture Network, GS1US, The FutureList, FusionAuth

1:00 PM

Cherry Hill Advisory, Crescent

1:30 PM

Charlie Financial, Aprime Technology

4:00 PM

Nathan Family Office

Artium AI, Freeplay, Silicon Valley Bank

Sidebar Summit, Redwood Collective

4:30 PM

HIRECLOUT

5:00 PM

Los Angeles Fun Events

Orbis86

6:00 PM

ImaginingForward

PowerYou AI

Musa Capital

Hustle Fund

VCPE Groups, Entrepreneur Ventures

Hive

A16z

Tech Pitch Roast Comedy LLC

Human To Human

7:00 PM

Verve, M13, Stifel, WSGR

Frances Mendez, Ryan Edwards

VENICE

7:00 AM

Bankless Ventures

Powerful Stuff, Drybaby

8:00 AM

J.P. Morgan Startup Banking Team - LA

9:00 AM

Google

10:15 AM

Open Venture Capital, Empowered Yoga Venice, Oya Femtech Apparel, Wellness Growth Ventures

12:00 PM

J.P. Morgan Innovation Economy Team - LA

Crypto Mondays, Continuum, Female Funders Club

4:00 PM

J.P. Morgan, WICIF, MCJ

6:00 PM

Product Manager Association of Los Angeles

6:30 PM

HITMKR Inc., The Bushido Group, Mission Matters

VIRTUAL

8:30 AM

Clutch Talent

WESTLAKE VILLAGE

11:00 AM

Hub 101, Steven Dorfman Center for Innovation & Entrepreneurship, California Lutheran University

WESTSIDE

3:00 PM

MaC Venture Capital

  • Speaker Panel: Leveling the playing field - Removing the barriers to entry for developers :See Details Here

Elemental Computing Inc.

Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit theofficial Tech Week calendar. Enjoy the start of LA Tech Week 2024!


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OpenAI's $6.6B Power Play: The Future of AI Just Got a Massive Boost 💰🚀
Image Source: Open AI - Sam Altman

🔦 Spotlight

OpenAI is making some exciting moves! The company just completed a massive $6.6 billion funding round, pushing its valuation to an impressive $157 billion. Thrive Capital led the charge, with big names like Andreessen Horowitz and Founders Fund also joining in. This investment will allow OpenAI to further scale its operations and advance AI technologies like GPT-4 across various sectors such as healthcare, entertainment, and business.

But that’s not the only exciting news. OpenAI has also secured an additional$1 billion credit facility, giving the company even more financial flexibility to execute its ambitious growth plans. This safety net ensures that OpenAI has the resources to scale safely and effectively while continuing to lead the AI space.

AI is becoming integral to industries worldwide, and OpenAI’s products—like ChatGPT—are seeing rapid adoption. From education to enterprise solutions, the company is driving significant advancements in how AI is integrated into everyday life.

Following Microsoft’s $10 billion investment earlier this year, this latest round underscores the market’s confidence in OpenAI’s potential. With its strong focus on responsible AI deployment and ethical scaling, the company is set to shape the future of AI in a way that benefits a broad range of industries and addresses global challenges.

As AI evolves, OpenAI remains dedicated to pushing boundaries while ensuring that its innovations prioritize safety, scalability, and social impact. Keep an eye on this space—big things are on the horizon!


🤝 Venture Deals

LA Companies

  • Impulse Space, a Redondo Beach-based company specializing in in-space transportation services, raised $150M in Series B funding led by Founders Fund, bringing its total funding to $225M, to expand its team and advance production of its Helios and Mira vehicles. - learn more
  • Nusano has secured over $115M in Series C financing, led by The Wasatch Group, to accelerate the commercialization of its radioisotope production technology, aimed at improving cancer treatment and medical diagnostics. - learn more
  • Future Trash, a multidisciplinary creative studio, has raised a $5M Seed funding round from TIRTA and General Catalyst to develop original intellectual property (IP) within Fortnite, focusing on building unique in-game content and experiences. - learn more
  • XType, the leading software company for multi-instance management on the ServiceNow platform, has raised a $21M Series A funding round led by Norwest Venture Partners to accelerate innovation and expand its platform capabilities on the ServiceNow platform. - learn more
  • 3Laws Robotics, a robotics company focused on building AI-powered platforms to enhance the safety, security, and operational efficiency of robotic systems, has raised a $4.1M Seed funding round led by TenOneTen Ventures. - learn more

LA Venture Funds
  • Watertower Ventures participated in the $8M Series A funding round for DocJuris, a leader in AI-based contract review and negotiation software that automates key tasks to streamline the contract process for enterprise teams and general counsels. - learn more
  • Progression Fund participated in a $3.7M Seed funding round for Permanent, a company focused on advancing sustainable agriculture by developing solutions that improve soil health and productivity. - learn more


LA Exits

  • Loom, an educational community platform that empowers women by providing comprehensive resources on reproductive health, sexual wellness, and parenting education, has been acquired by women's health brand Perelel, marking a significant expansion in the women's health and wellness sector. - learn more

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⚠️📲🌩️ Your Digital Lifeline: Top Tech Apps for Natural Disasters

Living in LA means being ready for anything—quakes, wildfires, crazy weather, you name it. Luckily, there’s a suite of tech apps designed to keep you informed, connected, and safe when disaster strikes. From real-time alerts to staying in touch with loved ones, these apps have you covered. Here’s the ultimate list to help you handle whatever chaos comes your way in LA County.

Get Real-Time Alerts

Image Source: MyRadar

FEMA App
  • What it does: Provides real-time alerts from the National Weather Service, along with shelter and disaster recovery info.
  • Key features: Weather alerts, shelter locator, and preparedness resources.
  • Available on:iOS | Android
MyRadar Weather Radar
  • What it does: Offers real-time, animated radar for tracking severe weather and storms.
  • Key features: Live radar, storm tracking, and severe weather alerts.
  • Available on:iOS | Android
Clime: NOAA Weather Radar
  • What it does: Delivers real-time radar and weather updates, with wildfire and flood tracking.
  • Key features: Customizable weather alerts, disaster tracking.
  • Available on:iOS | Android
American Red Cross Emergency App
  • What it does: Provides real-time alerts for over 35 types of emergencies, plus disaster preparedness tips.
  • Key features: Alerts, safety check-ins, and emergency tips.
  • Available on:iOS | Android
My Earthquake Alerts & Feed
  • What it does: Sends real-time earthquake alerts, with maps and detailed data.
  • Key features: Earthquake alerts, customizable notifications, detailed maps.
  • Available on:iOS | Android
Citizen
  • What it does: Delivers real-time alerts for emergencies, including natural disasters and crime near your location.
  • Key features: Safety alerts, live incident reports, and community updates.
  • Available on:iOS | Android

Stay Connected with Loved Ones

Image Source: Life360

While social media apps like Facebook and X provide real-time updates, additional tools can help with communication and location sharing, ensuring you stay connected and safe.

Nextdoor
  • What it does: Connects neighbors with real-time local updates on emergencies and community events.
  • Key features: Neighborhood alerts, local info, resource sharing.
  • Available on:iOS | Android
WhatsApp
  • What it does: Enables secure messaging, location sharing, and video/voice calls with family and friends.
  • Key features: End-to-end encryption, location sharing, voice/video calls.
  • Available on:iOS | Android
Zello Walkie Talkie
  • What it does: Turns your phone into a push-to-talk walkie-talkie for communication in low-signal areas.
  • Key features: Push-to-talk, works over Wi-Fi/data, group communication.
  • Available on:iOS | Android
Glympse – Share Your Location
  • What it does: Lets users share real-time locations with family and friends without needing an account.
  • Key features: Location sharing, ETA updates, private tracking.
  • Available on:iOS | Android
Life360
  • What it does: Tracks real-time location of family members and provides emergency SOS alerts.
  • Key features: Family location tracking, emergency alerts, crash detection.
  • Available on:iOS | Android

Stay Mobile

Image Source: PlugShare

For navigating road closures and traffic during disasters, Google Maps and Waze are essential tools that offer real-time updates and alternate routes. Along with these go-to options, there are additional apps that can help you stay mobile when it matters most.

GasBuddy
  • What it does: Locates nearby gas stations and provides real-time updates on fuel availability and prices.
  • Key features: Gas station locator, fuel prices, availability checks.
  • Available on:iOS | Android
PlugShare
  • What it does: Provides a comprehensive map of public EV charging stations worldwide. It offers real-time availability, pricing, user reviews, and photos of charging stations, helping you find the best nearby options.
  • Key features: Real-time station availability, detailed station info, user reviews, and trip planning.
  • Available on:iOS | Android

Traditional Preparedness Tips

In addition to these tech apps, it’s crucial to prepare for natural disasters with traditional methods:

  • Build a disaster kit: Gather essential supplies like food, water, first aid supplies, and a flashlight.
  • Develop an evacuation plan: Determine where you will go and how you will get there in case of an emergency.
  • Keep emergency contacts handy: Make a list of important phone numbers.

Maximize Battery Life and Data During Emergencies

During disasters, power outages and increased network traffic can affect your device's battery life and data usage. Consider the following:

  • Keep your devices charged: Use portable or solar-powered chargers to extend battery life.
  • Conserve data: Use Wi-Fi hotspots when available to avoid excessive data charges.

These apps are your go-to tools for staying informed, connected, and ready for anything in Los Angeles County. Whether you need real-time alerts, navigation assistance, or ways to keep in touch with loved ones, having these apps on hand can make all the difference when it matters most.

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