On the back of success with its upscale accommodation service in London, onefinestay has closed its Series B funding round and attracted the interest of venture capital firm Canaan Partners.
US-based Canaan Partners has joined up with Index Ventures and PROfounders to back onefinestay through a $12 million (£7.6 million) round. The funding deal follows on from its $3.7 million Index Ventures-led Series A round back in 2011.
London and New York-based onefinestay labels itself as an ‘unhotel’ and provides a service allowing customers to stay in ‘distinctive’ homes while the owners are away or out of town.
On the back of the deal, onefinestay says it is seeking to capitalise on the success of its London operations (which started in May 2010 with six homes) by launching a similar service in New York. The business is also looking into other international expansion plans.
Greg Marsh, co-founder and CEO of onefinestay, says that the company could have ‘hardly dared’ dream that owners of high-end homes would be so receptive to the business model.
He says, ‘But with hundreds of members in London together making many millions a year, we are hugely excited about our US launch and international expansion.’
According to onefinestay, its members are earning more than $50,000 a year by renting out a house or apartment that would otherwise be sitting vacant.
As part of the company’s Series A round it gained the support of industry experts such as Brent Hoberman, co-founder of Lastminute.com; Andy Philips, co-founder of Active Hotels; and David Magliano, former director of marketing for the London 2012 Olympic bid.
Marsh adds, ‘Canaan has outstanding bi-coastal presence in the US, and we particularly value [its] New York profile.’