San Francisco based apartment rental marketplace Apartment List has raised a $50m Series C round led by Passport Capital, Canaan Partners, and Industry Ventures. The company has raised $110m since 2011.
Co-founder and CEO John Kobs said that despite the competitive landscape which includes Zillow, HotPads and PadMapper, he believes Apartment List has a business model that’s different. It only collects payment from listings that actually result in a transaction. “We’re the only company that gets paid exclusively for success,” said Kobs. He said that this helps prevent scammers. Kobs says that their most successful communities are Denver, Dallas, D.C. and other “demand-constrained markets.” Apartment List aims to help landlords find renters in competitive regions. And while the aptly-named business is focused on apartments for now, it will eventually add condos available for rent. Kobs believes that this is a “huge opportunity” for growth because it will satisfy customers who are looking for “unique spaces.”