Summit Partners leads investment to support rapid growth and innovation
Foxen, a market leader in financial technology solutions for the real estate industry, today announced a $44 million Series A financing led by growth equity investor Summit Partners, with participation from Level Equity. Foxen will use the funding to accelerate development of its expanding product portfolio and fuel hiring across the organization.
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Foxen’s technology solutions center on financial wellness – the improvement in the management of finances through technology – and are designed to mutually benefit property managers, owners, and their residents. The company’s products were born of a market need for accountability and compliance in insurance coverage across the multifamily real estate market. Rental housing provides homes to more than a third of U.S. households[1], and while most multi-family property managers require renters insurance, compliance of this requirement is often not managed. Only about 57% of tenants carry an insurance policy[2], exposing renters to risk due to common incidents and leaving building owners susceptible to damage to the unit or property.
“As a property owner, I learned firsthand that requiring renters insurance is ineffective without the ability to manage compliance,” said Jay Harkrider, Managing Partner and Co-Founder of Foxen. “At Foxen, we’ve leveraged years of industry experience to build a technology platform that provides a convenient, affordable rental insurance alternative that simultaneously enables properties to achieve 100% compliance, creating a better experience for both residents and landlords. With the backing and resources of Summit Partners and Level Equity, we are poised to accelerate the expansion of this platform with new products that deliver on our vision of improving financial wellness through real estate.”
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Reimagining Renters Insurance
Foxen’s proprietary software solution is designed to seamlessly integrate with leading property management systems to provide real time access to property and resident compliance data, with automated enrollment in Foxen’s insurance solution for residents who incur lapsed or cancelled third-party coverage. The enrollment safety net, along with an embedded program solution at lease signing maximizes program participation while offering residents a convenient renters insurance solution. Foxen’s program maintains market-leading participation rates and is a trusted partner to some of the most respected property and asset management firms across the United States.
Foxen has grown rapidly since its founding in 2018; over the last twelve months, Foxen grew units monitored by more than 240%. This capital provides Foxen an opportunity to expand into a total addressable market of more than 24 million multifamily units in the U.S. alone.
“With intuitive products that are designed to be easily adopted, seamlessly integrated and quickly revenue generating, Foxen applies a fresh approach to complex processes in the real estate, insurance, and financial categories,” said Colin Mistele, Managing Director at Summit Partners, who has joined the Foxen Board of Directors. “Foxen’s approach has resonated with customers, helping the team to bootstrap the business as it has grown to serve property managers on a national scale. We believe this deeply experienced team has a significant opportunity to build on that momentum as they continue to develop and launch innovative products to benefit property owners and residents alike.”
This funding comes at a point of strategic inflection for Foxen, as the company seeks to scale its team and operations to support new product growth. In 2022, Foxen launched Rentistry, a rent reporting and credit building program that aims to positively impact residents through credit score improvements while creating value for the properties that offer it as a powerful rent collection tool. Foxen plans to double in size over the next twelve months, bringing new jobs to its operations in Columbus, Ohio, and Santa Barbara, California.
“We believe there is a need for smarter FinTech solutions in the multifamily real estate industry,” said Ben Levin, Co-Founder and CEO of Level Equity. “We expect our investment in Foxen to accelerate their release of solutions that continue to create new efficiencies in this space. We’re excited to partner with the team for this new phase of growth.”
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