Beyond Pricing
- one of
PhocusWire’s Hot 25 Startups for 2019
- has raised $42.5 million to develop dynamic pricing tools for the short-term rental market.
Bessemer Venture Partners led the Series A round, which significantly tops Beyond Pricing’s previous seed and post-seed funding total of $3.5 million.
With the capital, the San Francisco-based company says it will expand its suite of revenue management products for its core customer base of independent short-term rental owners, managers and developers.
Beyond Pricing’s tools, similar to what’s available to large hospitality companies, leverage more than 10 billion proprietary data points to make pricing recommendations, resulting in revenue increases of as much as 40% for its customers.
“Our customers make up the majority of the short-term rental industry but don’t have the resources to invest in their own software and have traditionally relied on analog ways of pricing their properties. We were the first company to create software specifically designed for the needs of these customers, giving them access to industry-leading technology for the first time,” says Beyond Pricing co-founder and CEO Ian McHenry.
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“Our mission is to put the power back in the hands of these customers and help them maximize both revenue and occupancy while maintaining a competitive edge as this industry continues to mature. This funding will allow us to deepen our relationship with our customers and offer new tools to help them maintain and grow their businesses.”
Beyond Pricing dynamically prices more than 150,000 listings in more than 7,000 cities around the globe; it has priced more than $2 billion in bookings.
In addition to product development, the company will use its latest funds to expand in Europe, including growing its team in Lisbon, Portugal.
Says Brian Feinstein, partner at Bessemer Venture Partners: “At Bessemer, we love investing in founders that are transforming industries that have been historically underserved by software. While hotels have fully embraced technology and dynamic pricing, the short-term rental industry is still under-penetrated.
“We were impressed with the Beyond Pricing team’s ability to consistently deliver revenue growth for their customers and think they are positioned to become the market leader in short-term rental software.”