Total amount raised
$839.6 Millions
Latest funding date
Location
Sonder has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The company is known for its tech-driven approach to hospitality, offering modern, design-focused accommodations in cities worldwide.
Keep reading to explore the intricacies of Sonder's fundraising journey and the investors backing this innovative platform.
What Is Sonder?
Sonder, founded in July 2014 in San Francisco, California, is a tech-driven hospitality company offering modern, design-focused accommodations for travelers. The company was established by Francis Davidson, Lucas Pellan, and Martin Picard.
Sonder provides a variety of accommodation options, from rooms to suites and apartments, in more than 30 cities across eight countries and three continents. Their innovative app offers self-service features and 24/7 on-the-ground support.
With a workforce of 1001-5000 employees, Sonder combines the best aspects of hotels and vacation rentals, emphasizing award-winning design and mobile-first service.
How Much Funding Has Sonder Raised?
- Seed Round
- Amount Raised: $6.5M
- Date: February 2015
- Lead Investors: BDC Venture Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop the initial product offering.
- Series A
- Amount Raised: $11.1M
- Date: February 2016
- Lead Investors: Spark Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale operations in new markets.
- Series B
- Amount Raised: $32M
- Date: March 2017
- Lead Investors: Greenoaks, Greylock
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and improve customer experience.
- Series C
- Amount Raised: $85M
- Date: August 2018
- Lead Investors: Greenoaks
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand into new cities and increase property inventory.
- Series D
- Amount Raised: $225M
- Date: July 2019
- Lead Investors: Tao Capital Partners, Valor Equity Partners, WestCap
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance service offerings.
- Series E
- Amount Raised: $170M
- Date: June 2020
- Lead Investors: Fidelity, Inovia Capital, WestCap
- Valuation at Round: $1.3 billion
- Motivation Behind the Round: To expand operations and business reach, including new functions, services, and partnerships.
- Post-IPO Equity
- Amount Raised: $310M
- Date: January 2022
- Lead Investors: The Gores Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support public market growth and strategic initiatives.
Total Amount Raised: $839.6M. Current Valuation: $1.3 billion.
Key Investors
- Fidelity
- Details: Fidelity is a multinational financial services corporation known for its investment management, retirement planning, portfolio guidance, and brokerage services.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Uber, Airbnb, SpaceX.
- Westcap
- Details: Westcap is a private equity and venture capital firm that focuses on growth equity investments in technology, financial services, and real estate.
- Investment Focus Areas: Technology, real estate, financial services.
- Notable Investments: Airbnb, Lyft, Sonder.
- Inovia Capital
- Details: Inovia Capital is a venture capital firm that invests in technology startups across various stages, from seed to growth.
- Investment Focus Areas: Software, digital health, fintech.
- Notable Investments: Lightspeed, AppDirect, Clearco.
- Greenoaks
- Details: Greenoaks is an investment firm that focuses on technology and consumer sectors.
- Investment Focus Areas: Technology, consumer sectors.
- Notable Investments: Robinhood, Stripe, Coupang.
- Spark Capital
- Details: Spark Capital is a venture capital firm that invests in early-stage startups in technology, media, and entertainment.
- Investment Focus Areas: Technology, media, entertainment.
- Notable Investments: Twitter, Oculus, Slack.
What's Next for Sonder?
Sonder's future looks promising as it continues to expand its operations and business reach. With a recent pivot towards longer stays, particularly for critical care personnel and students, the company is well-positioned to capitalize on the growing demand for flexible and extended accommodations. This strategic shift, coupled with the significant $170 million Series E funding, sets the stage for substantial growth opportunities in new cities and markets.
Future fundraising seems likely, given the company's strong valuation and investor interest. However, challenges such as competition from other short-term rental companies, regulatory hurdles, and maintaining high service standards as they scale could pose obstacles. Navigating these challenges will be crucial for Sonder as it aims to solidify its market presence and continue its upward trajectory.
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