Another travel startup that found itself scrambling to pivot as the COVID-19 pandemic took off is now announcing a huge round of funding after finding its feet and proving that it can grow, even under adverse circumstances. AvantStay — which has built a platform where it decorates and then lists properties owned by others for people to rent out for vacations or other short-term stays — has raised
In all, Sean Breuner, AvantStay’s CEO who co-founded the company with Reuben Doetsch (the CTO), said that 750,000 guests stay in its network of properties, with the average number per homes being seven guests. It’s currently not profitable, but it actually did tip into profitability during the pandemic, cutting lots of costs and also shifting to longer-term rentals aimed at corporates.
Airbnb has created and leads the market for private home accommodation — and it happens to be one of 60 partners that AvantStay has secured for marketing the homes on its platform — but Breuner believes the opportunity to develop a business distinct from that, aimed specifically at the opportunity with higher-end properties, still has a lot of growth left in it in its own right, in part because there are still a lot of consumers and business travelers that have yet to accept that they could have an experience better than what they have at high-end hotels.
“Customers are starting to meet the demand from an experience perspective in rental homes,” he said. “It has always lagged hotels by a wide margin. But the experience now matches the needs and requirements of what a guest is looking for.”
“Since we led AvantStay’s Series A investment over two years ago, we’ve watched the company not only grow their supply and revenue tenfold, but also navigate one of the worst possible macro shocks that occurred in the hospitality industry,” said Jodi Kessler, a partner at 3L, in a statement. “Their incredible execution and resilience, combined with a massive tailwind in the travel sector for AvantStay’s product makes us excited to double down on and support the team as they continue to build both a world-class hospitality brand for travelers, and a vertically integrated platform through which individuals and institutions can invest in short-term rental properties.”
In all, Sean Breuner, AvantStay’s CEO who co-founded the company with Reuben Doetsch (the CTO), said that 750,000 guests stay in its network of properties, with the average number per homes being seven guests. It’s currently not profitable, but it actually did tip into profitability during the pandemic, cutting lots of costs and also shifting to longer-term rentals aimed at corporates.
Airbnb has created and leads the market for private home accommodation — and it happens to be one of 60 partners that AvantStay has secured for marketing the homes on its platform — but Breuner believes the opportunity to develop a business distinct from that, aimed specifically at the opportunity with higher-end properties, still has a lot of growth left in it in its own right, in part because there are still a lot of consumers and business travelers that have yet to accept that they could have an experience better than what they have at high-end hotels.
“Customers are starting to meet the demand from an experience perspective in rental homes,” he said. “It has always lagged hotels by a wide margin. But the experience now matches the needs and requirements of what a guest is looking for.”
“Since we led AvantStay’s Series A investment over two years ago, we’ve watched the company not only grow their supply and revenue tenfold, but also navigate one of the worst possible macro shocks that occurred in the hospitality industry,” said Jodi Kessler, a partner at 3L, in a statement. “Their incredible execution and resilience, combined with a massive tailwind in the travel sector for AvantStay’s product makes us excited to double down on and support the team as they continue to build both a world-class hospitality brand for travelers, and a vertically integrated platform through which individuals and institutions can invest in short-term rental properties.”