June Homes Raises $50M Led by SoftBank with Demi Lovato Backing

June Homes Secures $50 Million to Reinvent the Rental Experience

A proptech company, June Homes, is officially launching after a period in stealth mode, backed by $50 million in total funding. The company is focused on streamlining and enhancing the rental process for both renters and property owners.

Series B Funding and Key Investors

SoftBank Ventures Asia spearheaded the startup’s most recent funding round, contributing $27 million in a Series B investment. Additional investors include TQ Ventures, FJ Labs, K50, Reshape, Quiet Capital, and prominent angel investors.

Among the angel investors are musician Demi Lovato, Behance founder Scott Belsky, and Oskar Hartmann.

Previous Funding Rounds

Prior to this, the New York-based company had already secured $13 million in Series A funding, again led by SoftBank Ventures Asia, and an additional $10 million through SAFEs (Simple Agreements for Future Equity).

The Founder's Inspiration

Daniel Mishin, Founder and CEO, developed his interest in real estate following an unexpected delay during a train journey. A stay in a budget-friendly hostel in Berlin at age 11 sparked his entrepreneurial spirit.

He initially experimented with turning his grandmother’s spare apartment into a short-term rental for travelers. Following a successful venture in the hospitality sector, Mishin established June Homes in 2017, driven by his personal difficulties navigating the New York City rental market.

Addressing Rental Market Challenges

“The high costs, unfair fees, complex requirements, and lengthy lease commitments made finding housing incredibly challenging,” Mishin explained. “This led me to believe there was a significant opportunity to innovate, benefiting both renters and individual landlords.”

Mishin believes the existing rental system is fundamentally flawed for both tenants and smaller landlords. He even suggests that the term “landlord” itself is archaic, reflecting an outdated power dynamic.

“Our language still echoes a 16th-century mindset,” he stated.

How June Homes Operates

The company utilizes a proprietary algorithm to identify undervalued rental properties that may require renovation. It has also created a streamlined process for inspecting, upgrading, and listing units for rent within a 72-hour timeframe.

According to Mishin, prospective tenants can then locate, apply for, and move into a new apartment “in as little as three hours.”

“Our algorithm automatically analyzes each building to determine the optimal June Homes model for it,” Mishin clarified.

Customizable Rental Options

June Homes offers tenants a high degree of customization. Rentals can be furnished or unfurnished, shared with roommates or occupied privately, and lease terms range from one to 18 months.

The company differentiates itself from corporate housing providers by offering flexible terms at rental rates comparable to traditional leases.

Benefits for Landlords

June Homes assists landlords by accelerating property occupancy and managing tenant-related issues, such as defaults and non-payment. The startup eliminates broker and management fees and does not require upfront payments from property owners.

Instead, June Homes processes all rental payments and compensates owners through either a fixed monthly amount or a share of the revenue collected from tenants.

Growth and User Base

The company has experienced a 2.5x increase in tenant acquisition and unit growth over the past six months. June Homes currently serves thousands of tenants across New York City, Washington, D.C., San Francisco, Los Angeles, Philadelphia, and Boston.

Millennials and Gen Z renters, prioritizing convenience and flexibility, represent a significant portion of the platform’s user base.

Investor Perspectives

“Finding a home should be an exciting experience, but for our generation, it’s often incredibly stressful, and June Homes aims to change that,” said Demi Lovato, an investor in the company’s Series A round.

The company reports a 25.5x lower rate of tenant defaults compared to the industry average, and a unit fill rate 10x faster than traditional methods. For instance, in July 2021, June Homes apartments in New York City were rented in an average of 7.5 days, compared to 76 days for other listings.

Future Expansion Plans

The newly acquired capital will be primarily used to expand June Homes’ presence to additional U.S. markets, with plans for global expansion within the next 12 to 18 months. The company also intends to increase its workforce.

Currently employing 144 individuals, the company has tripled its staff size in the past year.

SoftBank’s Confidence in June Homes

Sherman Li, partner at SoftBank Ventures Asia and a member of the June Homes board, believes the company is providing renters with “exactly what they want in the post-pandemic world – flexibility, access, and convenience.”

SoftBank was particularly impressed by June Homes’ ability to build a substantial housing portfolio “without owning a single property.”

SoftBank Ventures Korea’s Global Focus

Initially focused on the South Korean market, SoftBank Ventures Korea has broadened its investment scope to include early-stage ventures worldwide.

“We actively seek out early- to growth-stage startups with strong business potential, regardless of location, and June Homes is a prime example,” Li concluded.

Note: This article was updated post-publication with additional, and revised, information and statistics provided by the company.