The West Hollywood-based company announced the funding Dec. 15. The company, which was founded in 2017, had previously raised $20 million in Series A funding in 2019.
The Series B funding was led by Newport Beach-based family office Tarsadia Investments and equity firm 3L Capital, which has an office in West L.A. 3L Capital also led the Series A funding round.
Existing investors including Bullpen Capital and Convivialité Ventures joined the funding round. New investors include Capital One Ventures, Saluda Grade, Greenhawk Capital, Plus Capital, Bain Capital Chairman Stephen Pagliuca, former MultiGreen Properties Chief Executive Fred Tuomi, Offerpad founder Jerry Coleman, Lessen Chief Executive Jay McKee, L.A. Clipper Paul George and singer Shawn Mendes.
“Since we led AvantStay’s Series A investment over two years ago, we’ve watched the company not only grow their supply and revenue tenfold but also navigate one of the worst possible macro shocks that occurred in the hospitality industry,” Jodi Kessler, partner at 3L, said in a statement. “Their incredible execution and resilience, combined with a massive tailwind in the travel sector for AvantStay’s product makes us excited to double down on and support the team as they continue to build both a world-class hospitality brand for travelers and a vertically integrated platform through which individuals and institutions can invest in short-term rental properties.”
The funding will be used to help AvantStay grow, advance its technology and customer experiences, as well as expand into new markets and launch its brokerage services nationally.
The company has more than tripled its portfolio in the last year to more than 1,000
properties.
“The industry has seen monumental changes and expansion with new and differentiated offerings for the way people want to travel today,” Sean Breuner, AvantStay chief executive and founder, said in a statement. “This round of funding serves as a powerful catalyst to our company’s explosive growth as the leading short-term rental brand in the U.S.,”
“With Tarsadia, 3L, and our other investors’ support, we can continue to build a platform that meets the demands of guests who crave unique experiences and meaningful connections. Each of these companies has a deep understanding of the industry and will be instrumental partners in supporting our brand’s mission,” he added.
