NEW YORK — Common, a residential brand that designs, leases, and manages multifamily properties that appeal to today’s renters, has raised a $50 million Series D funding round led by Swedish investor Kinnevik and with participation from existing investors Norwest Venture Partners, 8VC and Maveron. Additional new investors in the Series D round include Wilshire Lane Partners, a prominent venture firm that specializes in real estate strategic partnerships, and Hanaco, a venture capital fund that invests in emerging startups.
With institutional partnerships and over 17,600 residential units under development in 26 global cities, Common will continue to grow its multifamily operating platform and family of brands with new funding and a trusted, long-term oriented partner in Kinnevik.
Common has seen tremendous growth in the past year by taking the tech-driven platform they have built around coliving, and applying it to all segments of the residential industry including different unit types, target renters, and brands. In 2020, the brand began managing Class A large-scale traditional multifamily buildings in Fort Lauderdale and Los Angeles through its institutional partnership with Nuveen Real Estate. Earlier this year, Common introduced a new brand, Noah, that leverages technology and automation to improve returns and resident experience in workforce housing, which represents more than half of US multifamily real estate. Common has been increasingly partnering with public sector groups through new initiatives including launching the Remote Work Hub in August, a new work/live development, and winning ShareNYC at the end of 2019, an initiative to create affordable housing in NYC through coliving.
“Our partnership with Kinnevik will greatly accelerate our mission to create a better rental housing experience through thoughtful technology and intelligent design,” said Common Founder and CEO Brad Hargreaves. “Over the past five years, Common has grown from a small coliving operator to one of the fastest-growing residential brands in the United States with over 17,500 units under construction. As a passionate investor with a long time horizon and strong customer empathy, Kinnevik is the right partner for this journey.”
Kinnevik will bring their deep expertise in consumer behavior across multiple digital categories to help Common become the most-loved residential manager in the world. Additionally, Kinnevik is well-placed to support the company’s expansion into its home European market in 2021 and beyond. Kinnevik Investment Manager Akhil Chainwala will be joining Common’s Board of Directors.
“Rental expense represents the biggest share of spend for most millennials. Yet, the tenant experience is typically unreliable and inconsistent, and the housing market has seen limited innovation over decades,” said Kinnevik CEO Georgi Ganev. “We believe Common’s vertically integrated offering is a superior proposition for renters. Additionally, the mission-driven team culture and asset-light nature of the business model help set the foundation for a durable business. We look forward to helping Brad and the team build a consumer-centric living brand.”
Common expects to have over 6,000 units under management by the end of 2020. Of the current over 17,500 units under development, one-third are traditional, two-thirds are coliving. Later in 2020, Common will open its second headquarters in Atlanta, where it expects the majority of its workforce to call home.