DALLAS--(BUSINESS WIRE)--IFM Restoration, an online marketplace that connects contractors with owners and property managers of rental properties, has closed a $10 million Series A round co-led by S3 Ventures and Brick & Mortar Ventures.
The funding will be used to hire additional talent and expand its proprietary technology platform to solve the growing challenge of managing and maintaining large portfolios of rental properties. The Series A funding represents the first institutional funding from the Dallas-headquartered company, bringing the total venture capital raised by IFM Restoration to $11 million. The company previously raised $1 million in seed capital.
“Having two powerhouse strategic partners like Brick & Mortar and S3 Ventures is a sign of the tailwinds ahead,” Daniel Feldman, co-founder, IFM Restoration. “The funding will enable us to execute our vision of having the largest network of highly skilled tradespeople in the country, and bring predictability to the contractor marketplace for the first time.”
There are approximately 17 million single-family rental homes in the United States, along with another 4 million multi-family properties (duplexes, triplexes, etc.). Property owners and managers—typically institutional investors, rather than individuals—must find a way to address an average of four to six maintenance issues per property each year. IFM Restoration’s online marketplace presents a huge opportunity for contractors and owners alike, matching skilled tradespeople with available work in their area.
In many areas of the country, home repair and maintenance has been designated as an ‘essential business’ in the middle of the COVID-19 emergency.
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IFM Restoration draws from a nationwide network of independent contractors, leveraging many sources to attract top-quality workers. The advanced matching capabilities of the service address the No. 1 issue these skilled workers have: a consistent volume of jobs.
“Our contractor-centric model reduces the cash flow constraints they typically experience; the bottom line is contractors earn more money on our platform,” said IFM Restoration Co-Founder and CEO Dustin Marx. “We take care of all the back-office needs from project management to bookkeeping to scheduling to demand generation, taking that load off the contractor so they can work more and ultimately make more money.”
Beyond matching contractors with work that suits their specialty while reducing operating expenses for the owners, IFM Restoration will increase its investment into machine learning and artificial intelligence to provide more predictability in repairs and maintenance and continue to improve the resident experience and contractor experience.
“IFM Restoration helps to maintain some of the largest rental portfolios in the United States across many markets,” said Charlie Plauche, partner at S3 Ventures. “They’ve solved some of the challenges unique to maintaining large portfolios of properties, and we’re excited to partner with them as they continue to build a market-leading company.”
“We are pleased to be investing in Dustin and the IFM Restoration team as they’re solving a critical challenge in the world of managing our built environment: the maintenance and repair of residential rental properties,” said Darren Bechtel, founder and managing director of Brick & Mortar Ventures. “They have created a seamless, efficient technology solution that makes both sides of the equation—property owners and renters—experience a streamlined service visit. We look forward to working with the company and its board to continue to optimize and scale IFM’s operations.”
About IFM Restoration
IFM Restoration partners with real estate investment trusts and property management companies to simplify the rental property maintenance process. IFM puts integrity first by crafting hassle-free home maintenance experiences for residents, contractors and clients. IFM has created an online platform that matches skilled workers with property owners, turning a historically inefficient process for both sides into a positive experience. Learn more at https://ifmrestoration.com/.
About S3 Ventures
S3 Ventures is an early, expansion and growth-stage venture firm with $500 million under management that is based in Austin, Texas. S3 is focused on information technology solutions that solve large business problems. Further, S3 also invests in medical devices that improve the human condition. S3 partners with each investment and helps focus methodically on what it takes to build a successful company. Visit http://www.s3vc.com/ for more information.
About Brick & Mortar Ventures
Brick & Mortar Ventures is an early-stage venture fund focused on the Built World. Founded by Darren Bechtel, the firm invests in emerging companies developing innovative software and hardware solutions for the industries of architecture, engineering, construction, and facilities management. Notable past investments of the firm and its General Partner include seed-round participation in PlanGrid, BuildingConnected, BuildZoom, and Rhumbix, as well as early-stage investments in FieldWire and Levelset (formerly Zlien). Brick & Mortar Ventures is based in San Francisco.