Global Founders Capital Invests $9.3M in Awning - Real Estate Tech

Investing in Single-Family Rentals Made Easier with Awning

For many investors, generating passive income through single-family rental properties represents a desirable goal, yet the process can often seem daunting.

Awning: A New Platform for Remote Real Estate Investment

Awning is a recently launched startup aiming to simplify this process. The platform enables individuals to invest in single-family rental homes, even in markets outside of their immediate location.

The San Francisco-based real estate brokerage has secured $9.3 million in seed funding, led by Global Founders Capital, as it emerges from its initial stealth phase.

Investors Back Awning's Vision

The financing round also included participation from MassMutual Ventures and a group of strategic angel investors.

Notable investors include Guy Gal & Ed Wu, co-founders of Side; Auren Hoffman, founder of SafeGraph; Peter Fishman, former VP of Analytics at Opendoor; Justin Overdorff, Partner at Lightspeed Ventures; and Lucy Guo, founder of Scale.

The Team Behind Awning

CEO Shri Ganeshram and Danaus Chang founded Awning in 2019.

Ganeshram previously held roles as a founding team member at FlightCar and as lead product and engineering at Eaze. Interestingly, Ganeshram left high school in Texas after being accepted early to MIT, where he later co-founded FlightCar.

Platform Launch and Current Availability

Awning began operating in closed access earlier this year and is now available to investors throughout the U.S. and Canada.

Currently, the platform focuses on properties in California, Texas, and Florida, with plans to expand into additional markets in the coming months.

How Awning Leverages Technology and Expertise

Awning utilizes machine learning and data analytics to identify promising single-family rental properties nationwide, providing investors with estimations of potential financial returns.

Investors are paired with advisors who help define their investment strategy. Awning’s local agents then conduct qualitative reviews of each property.

Additional Support Services

• Advisors assist investors in securing financing.
• Buyers are connected with “vetted” property managers for ongoing property oversight, leasing, and maintenance.

Awning vs. Mynd: A Comparison

Awning shares similarities with Mynd, another startup focused on simplifying single-family rental property investment. However, key differences exist.

Unlike Mynd, Awning does not offer property management services. Furthermore, Awning concentrates on individual investors, while Mynd also caters to institutional clients.

Data-Driven Property Curation

Awning’s “advisors,” who are also licensed real estate agents, curate properties based on an investor’s budget and objectives.

The startup’s proprietary machine learning model estimates rent, expenses, appreciation, and potential ROI for each listing.

The Investment Process

The platform aggregates listings from various MLSes, automatically analyzing each property for returns and risks after understanding an investor’s financial goals.

Ganeshram explained that investors can communicate with advisors and submit offers directly through the platform when they are ready to proceed.

Addressing Traditional Investment Challenges

Ganeshram noted that investing in single-family rentals has historically been a “cumbersome” process.

He added that it often “feels like it’s stuck in the last century.”

A Blend of Technology and Human Expertise

Awning asserts that its combination of technology and human support creates a faster and more streamlined experience.

Early Traction and Revenue Model

To date, the platform has facilitated $5 million in real estate transactions. Awning generates revenue through a commission from the seller, similar to traditional real estate brokerages.

This commission typically amounts to 6% of the listing price, paid upon closing, with 3% allocated to the buyer’s and seller’s agents respectively.

Future Expansion Plans

Awning intends to launch in Florida and Alabama later this year, with further market expansion planned for the following year.

Expanding requires establishing a licensed brokerage in each new state.

Investor Confidence in Awning

Don Stalter of Global Founders Capital stated that his firm had known the Awning co-founders for years and was eager to lead their initial funding round when they presented their concept.

Kendrick Kho of Global Founders Capital highlighted Awning’s focus on individual buyers as a key differentiator from other real estate investment startups.

Focus on Individual Investors and Property Familiarity

Kho also expressed appreciation for the company’s approach of familiarizing buyers with potential investments as tangible properties, rather than simply numbers on a spreadsheet.

He emphasized that Awning’s “product and engineering expertise” have enabled them to build a platform with superior curation, education, and data accuracy.

The Value of Human Agents

Kho also noted Awning’s willingness to collaborate with real estate agents, a departure from some real estate tech companies that view agents as unnecessary.

He explained that buyers investing remotely, such as those in New York City considering properties hundreds of miles away, often benefit from the guidance of a local expert.