LeaseSurance, a prominent insurtech startup based in South Africa, has successfully raised ZAR3 million (equivalent to US$161,000) in seed funding. This funding injection will empower the company to expand its team and further enhance its cutting-edge technological solutions tailored to the real estate industry.

LeaseSurance leverages financial technology to optimize assets within the rental real estate sector by revolutionizing the traditional approach of using security deposits. The startup offers a comprehensive B2B solution to owners and operators in the rental real estate domain. It equips them with a data-centric risk engine and a data platform designed to amplify operational revenue and optimize the performance of their property portfolios.

Historically, landlords have depended on cash deposits as safeguards against tenant defaults caused by various pressures. However, cash deposits come with limitations, including administrative complexities and limited protection against rent loss and property damages. This scenario imposes financial constraints on both tenants and landlords.

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Paul Schaefer, CEO of LeaseSurance, explained,

Cash deposits present administrative challenges and limited protection against rent loss and damages, creating financial constraints for both tenants and landlords.

LeaseSurance's innovative B2B technology-driven lease insurance confronts these challenges head-on. By alleviating administrative burdens, replacing cash deposits with affordable monthly fees, and reducing bad debts, the solution offers landlords up to five times more protection. This enhancement translates to improved Net Operating Income (NOI) for property owners. Moreover, the technology enables landlords to eliminate existing barriers like concessions and lower deposits, resulting in substantial savings and improved financial performance.

The ZAR3 million (US$161,000) seed funding round was spearheaded by Fedgroup Private Capital, a notable financial institution. This investment serves as a catalyst for LeaseSurance's growth trajectory and the refinement of its offerings.

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Paul Schaefer remarked,

This is an exciting development for us. It comes at a time when we are ready to take our product to the next level.

Sheldon Friedericksen, General Manager of Fedgroup Private Capital, highlighted LeaseSurance's commitment to innovation. He expressed, "LeaseSurance has created the foundation for an end-to-end enterprise insurtech property platform which resonates with Fedgroup’s 30+ years’ experience in the property industry. Our investment will be used to continue to build the solid foundation required to grow this truly exciting and much-needed solution in the property sector."

Friedericksen added

"With this investment, LeaseSurance now forms part of the broader property ecosystem within Fedgroup. Our curated network of providers allows us to unlock value in assets and support property owners and their tenants while reducing waste through the provision of utility management services that incorporate smart technologies around water and energy."