Landfolk raises €3,8M in SEED round
In a depressed investment climate, it takes something extraordinary right now to raise capital. The just two-year-old Danish startup, Landfolk, has an ambition to become Europe's preferred platform for premium holiday homes and has just raised its second round of capital of EUR 3.8M/USD 4M from SEED Capital.
In just two years, Landfolk has grown from none to more than 1000 handpicked holiday homes across Denmark, Norway and Germany. And the plan is to double that number by 2023. Despite this, only 60 percent of the holiday home owners who apply to become part of Landfolk make it through the eye of the needle.
"We handpick our holiday homes based on carefully selected criteria that attract both new holiday home guests and holiday home owners. These include owners who would never think of renting through a traditional platform or letting agency. And a new generation of second home owners who have put a huge amount of energy and resources into decorating and making their holiday home personal and attractive," says CEO Christian Schwarz Lausten.
It's really exciting to see Landfolk shake up an industry that has been stagnant for far too long. – Ulla Brockenhuus-Schack, Managing Partner at SEED Capital.
Expanding the market for holiday homes
Only one fifth of Danish holiday homes are rented out. That figure is even lower in Germany and Norway. 70 percent of the holiday homes on Landfolk's platform have either never been rented out before or are not rented out on other platforms.
"It's really exciting to see Landfolk shake up an industry that has been stagnant for far too long. They have managed to create a company in just two years with impressive turnover by, among other things, expanding the market with a segment that has never previously rented out their holiday home, and a team that manages to execute like few others," says Ulla Brockenhuus-Schack, Managing Partner at SEED Capital.
According to an analysis from the Danish Coastal and Nature Tourism Association, this corresponds to one full-time job every time three new holiday homes are added to the rental market. Expanding the rental market therefore also has positive socio-economic effects.
An investment to prove product market-fit in Norway and Germany
In Landfolk, the investment will be used to develop the product and technology even further. The ambition is to have the market's strongest digital platform that makes it easier to rent out your holiday home in an ultra modern way. At the same time, it should also be a simple and inspiring digital experience to book the perfect holiday home for your next vacation across national borders.
"Over the past three months, we have launched Landfolk in Germany and Norway, where apparently we have hit a gap in the market; it's pouring in with homeowners for whom it is extremely important to have great flexibility and control over the rental of their secondary home. It will be a big and exciting task to support them in which we will invest a lot of resources," says Christian Schwarz Lausten.
SEED Capital supports the high ambitions. "We have tremendous experience investing in Danish startups like Trustpilot, Vivino and Lunar – all of which have become unicorns. So there is plenty for Landfolk to live up to", says Ulla Brockenhuus-Schack, Managing Partner at SEED Capital.
It's pouring in with homeowners for whom it is extremely important to have great flexibility and control over the rental of their secondary home. – CEO Christian Schwarz Lausten