Why we invested in Frontdesk
In 2008, Airbnb changed the hospitality game. Travelers came to expect unique stays that allowed them to feel like a local in any location. However, over the years, guests found that not all rental properties met the same standards — leading to inconsistent experiences. To capitalize on this opportunity, a new generation of hospitality brands such as Sonder, Kasa, and Mint House emerged to professionalize the rental property experience. But one company in particular caught our eye.
Frontdesk is the fastest-growing short-term rental (STR) property manager in the United States, and it just announced the closing of $13M in Series B financing led by Stormbreaker Ventures with support from JetBlue Technology Ventures (JTV), Veritas Innovations, Motivate Venture Capital, and several strategic investors. Aligned with JTV’s investment focus on reimagining the accommodation experience, our investment is in support of more options for travelers, a uniquely efficient business model in the STR space, and direct access to market data and intelligence.
Based in Milwaukee, Frontdesk operates primarily within Class A apartment buildings and aims for the quality and consistency standards of top hotel brands. Frontdesk acquires units and showcases that inventory on its own website, as well as major marketplaces like Airbnb, Vrbo, and Marriott Homes & Villas. The company now operates more than 1,000 units in 30 markets, and has hosted more than 400,000 guests to date. Frontdesk made the Inc. 5000 list in 2022 and was also named the #1 fastest-growing travel company by the publication in 2021.
One of the things we think is special about Frontdesk is how the company was able to differentiate early on by perfecting its business model first in lesser-known destination cities, such as Milwaukee and Indianapolis, that are less competitive and sometimes overlooked in the market. Impressively, this resulted in reaching the milestone of 500 units with $5M in capital, which is substantially less to reach the same milestone than that of their peers.
Frontdesk’s proprietary software powers its efficient and scalable model, allowing the company to better serve guests and automate and scale internal operations. Some of the early customers include Greystar, Camden, Berkshire, Laramar, Core Living, and TWG.
Frontdesk plans to use the Series B capital to help acquire several thousand more units over the next few years across an estimated addressable market of ~$27B.
Frontdesk not only provides a home away from home for travelers, but also a sustainable rental model for property owners. With a unique product offering, proven sales model, capital efficiency, and large market opportunity, JTV is proud to be an investor and looking forward to continued expansion and opportunities for collaboration.
