US-based tech-enabled vacation rental platform Overmoon has stepped out of stealth mode, announcing an $80 million infusion of equity and debt funding. The funding breakdown comprises $10 million in venture capital dedicated to scaling Overmoon’s technology development, $30 million in real estate equity for home down payments, and $40 million in debt financing. Key backers include NFX, Khosla Ventures, Camber Creek, 1Sharpe, Sunsar Capital, and others.
Founded in 2021 by CEO Joe Fraiman, formerly the founder and president of Lyric, Overmoon aims to combine the best features of hotels – comfort, amenities, and concierge-level service – with the advantages of vacation homes, offering shared spaces for families and friends. Fraiman emphasizes the company’s commitment to providing the convenience of a rental home coupled with the reliability of a high-quality hotel experience.
In an additional strategic move, Overmoon has partnered with Flock Homes, an Andreessen Horowitz-backed startup, to introduce Overmoon Exchange. This innovative fintech-enabled program offers vacation home owners the opportunity to leverage Overmoon’s 721 Fund, providing significant tax, time, and investment benefits. Flock Homes, known for its similar exchange program for single-family rental properties, joins forces with Overmoon to create a unique solution for vacation rental owners across the country.
The potential benefits for homeowners participating in Overmoon Exchange include deferring capital gains tax, relieving the burdens and costs of property management and maintenance, enjoying regular passive income through fund distributions, benefiting from long-term real estate appreciation, and reducing risk by diversifying income sources.
Pete Flint, general partner of NFX and founder of Trulia, led the initial venture capital investment in Overmoon and expressed enthusiasm for the unique opportunity the platform presents to efficiently manage estates while maintaining passive income and real estate appreciation potential. Flock Homes CEO Ari Rubin also voiced confidence in Overmoon’s ability to bring this distinctive solution to vacation rental owners nationwide.
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By Proptechbuzz
By Ravi Kumar
