Flyway, a proptech startup that manages co-owned second homes, announced raising $10 million in seed and debt funding, according to a press release.
Participants of the round include Signal Ventures, Monday Capital and GroupRMC, and angel investors like the founder of Loft, Florian Hagenbuch, and Blueground co-founder and CEO Alex Chatzieleftheriou.
The funds will be used to acquire and sell Flyway’s first properties in London.
“This raise will help us make the first critical step toward our vision to democratize access to second homes in cities all over the world. We believe there is a tremendous opportunity to help people live in different cities while retaining the value of their investment and, at the same time, get access to a lifestyle that only the ultra-wealthy people had so far,” Flyway’s CEO Nikos Drandakis told The Recursive.
The London and Athens-based company focuses on co-ownership of second homes in international cities. Using technology and property management tools for cleaning, repairs and maintenance, it enables buying and selling of these properties, the statement says. The startup aims to provide affordable alternatives to investing in hotels, rentals and full home ownerships.
The model is suited for frequent city travelers who can choose their ownership level based on their budget, needs, locations and house type preferences. The process involves converting a home into a “property-specific LTD (Limited Company)” with 12 shares.
Buyers have the option to choose their share. An example in the release explains that buyers choosing a share of a quarter of a house can stay in it for a quarter of the year. Flyway then sells the rest of the shares to other buyers.
The Flyway app enables stay reservations, managing shared expenses with other co-owners, communicating with the home manager and remote home unlocking options on their phones.
“Ownership of a pied-à-terre is now much more accessible since buyers can purchase anywhere from one-twelfth to half of the home, depending on their occupancy needs.” Drandakis said in the release. “It dramatically reduces the hassle of owning a property away from your primary residence.”
He says this DIY model of co-ownership resembles that of Airbnb and allows the real estate segment to expand as the company eliminates challenges like demand aggregation, property management and scheduling from the process.
Drandakis envisions contributing to solving the housing crisis in London where owners leave some second homes empty for 80% to 90% of the time, thereby “democratizing” the ownership model. “Coupled with pressing societal issues like housing affordability and empty second homes, it is more timely than ever to fully utilize those prime real estate assets,” he said in the release.
In other recent proptech news, Haywire, a fiber broadband internet and managed Wi-Fi provider to multifamily communities, is bringing its technology to Purdue University’s Discovery Park and other multifamily developers and residents. Blackstone’s Home Partners of America will halt its buying of single-family homes in 38 regional markets in the U.S.