TEL AVIV, Israel, July 13, 2021 (GLOBE NEWSWIRE) -- Migdal Insurance will invest $10 million in the Israeli company Venn as part of the startup’s current fundraising efforts, which have already pulled in $60 million in a Series B round. This elevates Venn’s fundraising in previous rounds to a total of $100 million to date.
Venn has developed a technological platform for the creation of shared experiences in urban residential neighborhoods and communities. The company’s growth rate shot up by 1,200% in 2020, fueled by unusually high demand among owners of multi-household rental properties in the United States.
The latest funding round’s addition of strategic partners that can propel the company into accelerated growth signals a new phase in Venn’s trajectory. Venn’s platform provides solutions for residents, property owners and local businesses by connecting them with their neighborhood, the place where they spend most of their time.
Migdal’s decision to invest in Venn reflects the belief that the startup provides a solution that will continue to grow among neighbors, property owners, real estate companies and management companies. Thus, Migdal’s investment forms part of its strategy to invest directly in startups that are already in the growth stages – companies that reflect Migdal’s belief in their business models and their chances of becoming leaders in their categories.
Guy Fischer, Chief Investment Officer and Deputy CEO, Migdal Insurance, says: “Our investment in Venn constitutes a stratum of Migdal’s direct investment strategy in growing companies in the realm of technology and fintech. Along with this, Venn creates positive impact and is also attuned to the company’s ESG (environmental, social and governance) investing because it connects between people and the community.
“Venn has a well-based business model that enables it to generate significant future growth by creating a sense of belonging for neighbors, alongside efficient management and a rich array of local services. Venn’s outstanding management team has created a strong organizational culture and an excellent company infrastructure, and the current investment is the first step in the vision of a long-term partnership.”
Or Bokobza, CEO and Co-Founder, Venn, says: “The past year proved again that Venn’s model is important and meaningful in the creation of better neighborhoods that people want to stay in, thus enabling property owners to improve their business results. Our growth over the past 10 months sharpened the need for strategic partnerships that can lead Venn to exceptional growth. Migdal’s participation was natural from the moment we moved into the growth stage; Guy and the investment team at Migdal showed that Migdal understands innovation, can identify vision and can make strategic decisions at a pace that works for startups. We’ve gained a partner for our journey.”
The Venn platform was developed, tested and upgraded in Venn communities throughout the world over the past few years. Due to increasing demand, the company decided to sell the platform to third parties, such as property owners, real estate companies and management companies. This has proved to be a resounding success economically, generating an increase of $120 in NOI (net operating income) per apartment per month for property developers and owners. This is attributable to the value maximization resulting from retaining tenants for longer periods and reducing tenant turnover. No less important is the creation of significant social impact that increases the participation of neighbors in community life, instills a sense of belonging and amplifies the neighborhood’s social cohesion. Taken together, these factors boost the cash flow of local businesses and, above all, upgrade the neighborhood residents’ quality of life.
About Venn
Venn is the only company in the world offering a platform that links physical, human and digital space to create a unique residential experience in urban neighborhoods. The Venn platform digitally connects residents of a certain area and produces for them a local community to which everyone wants to belong, so they can enjoy a wide range of activities, events and services.
Venn transforms neighbors into partners in designing their residential experience in the realm of social life, businesses and services. Thanks to the enhanced lifestyle experience Venn offers, residential areas that use the platform become more desirable, thus aiding in tenant retention and reducing tenant turnover. The Venn platform enables property owners to streamline the management of apartment inventory, simplify rent collection and reach valuable insights based on the constantly updated data in the system.
Founded in 2017, Venn currently operates in neighborhoods in Brooklyn, Tel Aviv, Berlin and Kansas City. The platform serves dozens of partners in companies that manage thousands of residential units. Having raised a total of $100 million to date, Venn is embarking upon a major global expansion program. The company currently employs 60 workers and it plans to recruit an additional 75 employees, 50% of whom will work in the company’s R&D center in Tel Aviv.