In Largest Proptech Pre-Seed Round Ever, 100 Raises $5.2M

Startup 100, a first-of-its-kind multifamily rental software platform, announced Tuesday that it closed a $5.2 million pre-seed funding round and a strategic partnership with secure identity company Clear to launch a renter fraud prevention service.

MetaProp, RiverPark Ventures, Freestyle Capital and Contest Point, along with a coalition of top multifamily operators across the country, participated in the funding, which marks the largest pre-seed fundraise in U.S. proptech history, and one conducted by a female-led company, 100 said in its announcement.

The startup’s trademarked Verified Renter Network platform is designed to streamline the rental application and screening processes with fraud-detecting security features, in effect creating a service similar to a TSA PreCheck system for rentals. (Clear works with the Transportation Security Administration on just such prechecks.) 

CEO Caren Maio and Chief Technical Officer Vishal Patel, along with Shawn Sullivan, co-founded the Manhattan-based 100, which addresses a rental market that accounts for billions of dollars in annual transactions globally but faces fraud and debt issues. More than 93 percent of owners were defrauded in the last 12 months, and 70 percent experienced some form of identity theft, according to a recent survey from the National Multifamily Housing Council (NMHC).

“Our mission is to produce 100 percent confidence in the way people rent real estate,” said Maio. “We want to make the leasing experience frictionless and fraud-proof. That’s the whole goal of the business.

“A big part of the bad debt crisis right now is around fraud — we’ll call it at the gate, right upon a screening decision. The partnership we have with Clear is to bring this solution to market. But, really, the goal here is we want to offer a best-in-class screening solution that makes sure qualified renters are going through the process.”

Maio, the former CEO of Funnel Leasing, and Patel, the company’s former vice president of engineering, have built, operated and scaled some of the leading multifamily technology companies that have come to market over the past 15 years. These firms created billions of dollars in enterprise value through multifamily marketing, lead management and online leasing.

“There is no better team to bring this much-needed solution to market and make the rental process void of friction and fraud,” said Zach Aarons, general partner at MetaProp. “Clear’s partnership, the launch of the Verified Renter Network, and the 100 team’s experience make them unstoppable. 100 is one of those rare companies that can change the rental landscape as we know it.”

Having left proptech moving company Moved, where she was president and chief strategy officer, in December 2023, Maio said she conducted a “road show” with multifamily owners to determine their biggest needs and what kind of new company could address them.

“When I did my road show, I said, ‘What’s the biggest thing you’re trying to solve right now?’” said Maio. “‘Fraud and debt.’ So, I was like, OK, check the box. This is a meaningful problem. Then we said, ’How do we bring this to market?’ And CLEAR was an obvious choice for a partner. When you look at what they’ve done in aviation — if you’re safe enough to fly in the sky, you’re safe enough to rent an apartment. The technology that they’ve delivered sparked conversations around how we harness the technology they’ve built and make it speak to multifamily, leveraging it in a way that will provide value to multifamily operators as well as renters, because they deserve a better experience as well.”

The pre-seed funding and partnership with Clear has resulted in 100’s launch with 10 full-time employees, said Maio.

“100 revolutionizes how we interact with our tenants from the start,” said Guntram Weissenberger, president of Westover Companies, which has 17,000 units in more than 80 communities near Philadelphia and New York City, among other locations. “Our teams no longer spend countless hours verifying applicant information while prospective tenants wait for our decision. 100 helps us deliver great experiences on both sides of the equation and saves us time and money while we do it.”

Philip Russo can be reached at prusso@commercialobserver.com.