Super Raises $50M for Home Repair Subscriptions

Real Estate Market Growth Fuels Funding for Home Repair Startup

The real estate market has experienced considerable growth this year, and a startup focused on addressing a significant homeowner need – the management of repair and maintenance services – has recently secured funding following a period of strong expansion.

Super Secures $50 Million in Growth Funding

Super, a company offering repair and maintenance solutions for electrical, mechanical, appliance, and plumbing systems through a monthly subscription model, has successfully closed a $50 million growth round of investment.

The company intends to utilize these funds to broaden its service area into new markets, increase its workforce, and further develop its range of maintenance and repair services, alongside expanding its partnerships within the home-warranty-by-subscription sector.

AI Enhancement and Market Expansion

CEO Jorey Ramer, who co-founded the company with Ryan Donnelly (VP of engineering), stated that a portion of the investment will be allocated to improving the AI technology that powers Super’s service and pricing structures.

Currently, Super operates in several rapidly expanding housing markets across the U.S., including Austin, Chicago, Dallas, Houston, Phoenix, San Antonio, and Washington, D.C. – notably, not San Francisco itself.

Since its previous funding round in April 2019 – a $20 million Series B – the company has seen a 7x increase in revenue. Specific revenue and user figures remain undisclosed.

Strategic Backers and the Insuretech Ecosystem

This latest Series C funding round includes a number of strategic investors, reflecting the interconnected nature of the financial and insurance services ecosystem relevant to homeownership. Super now identifies itself as an “insuretech” company.

The round was led by Wells Fargo Strategic Capital, the venture arm of the banking giant. Additional investors included home construction leader Asahi Kasei, AAA – Auto Club Group (also an insurance provider), Gaingels, and REACH.

REACH is a scale-up service provided by Second Century Ventures, the investment fund of the National Association of Realtors. Aquiline Technology Growth, Liberty Mutual Strategic Ventures, Moderne Ventures, and the HSB Fund of Munich Re Ventures – all previous investors in Super’s $20 million Series B round – also participated in this round.

Total Funding and Valuation

To date, the company has raised a total of $80 million, though its current valuation has not been disclosed.

The Genesis of Super: From Renter to Homeowner

Jorey Ramer conceived the idea for Super after personally experiencing the challenges of homeownership following his move to San Francisco after selling his previous startup, Jumptap – an advertising network acquired by Millennial Media (now part of Verizon).

Having been a lifelong renter, Ramer found the responsibilities of property ownership daunting. He expressed, “I liked being a renter. You pay a fee, and you know what to expect.” The name “Super” references the building superintendents who handle maintenance in apartment complexes, embodying the level of service Super aims to provide.

A Networked Approach to Home Maintenance

Interestingly, Ramer’s approach to addressing this gap mirrors the challenges faced by Jumptap in the ad tech space. Rather than building a service business from scratch, he chose to create an integrated network leveraging existing small service enterprises in the home maintenance sector.

This strategy parallels the approach of connecting online properties to provide advertisers with a broad reach, rather than constructing a single, large platform.

Super’s Marketplace Model

Super operates as a marketplace, connecting homeowners with licensed service professionals who utilize the platform for free. Super manages payment based on service requests.

Users access these services through their monthly subscription plans, with varying options depending on their chosen service level.

Enhancing Monthly Plans with Technology

The newly acquired funding will be used to refine the functionality of these monthly plans.

Algorithms determine service pricing based on factors like location and home size. Subscribers can use the app to report issues, request maintenance, and provide detailed information to expedite issue resolution and, in some cases, enable automated adjudication.

The Role of Emerging Technologies

Advancements in AR and computer vision have contributed to the development of more responsive home service solutions, an area that has historically been underserved. Several other companies, including Hover, Nana, and Jobber, are also exploring these technologies.

Scalability and Future Service Expansion

Super’s scalable business model – relying on contractors – simplifies the addition of new coverage types compared to building services internally. This positions the company for potential expansion into additional service areas.

Ramer explained, “The things we would do are things your super would do. So that might include fixing plumbing, but might also potentially include cleaning carpets, which you could think of as maintenance. Painting is another interesting area. It seems like it might be a cosmetic thing, but if you do not paint, you risk dry rot. It’s also preventative care. So if we, say, cover 100% maintenance you could imagine that included, too.”

Focus on Essential Home Maintenance

The company is unlikely to venture into major renovation projects, such as bathroom or kitchen remodels, or loft conversions. The focus will remain on maintaining the essential functionality of homes.

Strategic Partnerships and Future Opportunities

Beyond expanding its own platform, Super is exploring potential partnerships. AAA’s existing business in roadside assistance and insurance presents a natural synergy, with Super described as “roadside assistance for your home.”

Wells Fargo, as a mortgage lender, offers a complementary service, providing customers with a means to maintain their properties. This also serves as a form of insurance for the bank, ensuring the homes it finances remain in good condition.

Matthew Raubacher, managing director for WFSC’s Principal Technology Investments Group, stated, “Wells Fargo embraces innovation, and we’re excited to support a tech-forward platform like Super which brings further advancement to the home services market. The challenges of ongoing repairs and maintenance resonates with every homeowner, and Super provides an experience that is convenient for the customer, while boosting job visibility for local contractors and businesses. We look forward to seeing them continue to widen their geographic footprint and expand their product offering.”