By Madison Hogan – Atlanta Inno Staff Writer, Atlanta Business Chronicle
PadSplit, an Atlanta-based affordable housing tech startup, has raised $4.6 million in a seed round. Social impact and institutional investors contributed to the round, which was led by Core Innovation Capital and includes Cox Enterprises, Kapor Capital, Techstars Ventures, 1984 Ventures, The Impact Engine, Metaprop and Enterprise Community Partners. Arjan Schütte from Core Innovation Capital and Kathryn Petralia from Kabbage will join PadSplit’s board, according to a news release.
PadSplit creates incentives to provide safe and affordable housing to the workforce while also increasing profitability for property owners. Founder Atticus LeBlanc said a majority of the funding would go towards hiring and marketing over the next two years.
“We’re at 14 (employees) today and I would say over the next year, probably hiring another 10 more, (then the year after that) probably another 20 more,” he said.
In addition to the funding, PadSplit recently transitioned as a traditional B-corp into a public asset corporation because the company is providing public benefit and affordable housing. Last year, PadSplit participated in the Techstars accelerator program.
“We’re just growing fast, no major pivots or anything like that,” he said.
Founded in 2017, PadSplit provides a shared housing experience — a “PadSplit” — with private bedrooms and fixed utility costs.
PadSplit members average $21,000 in income annually and report $460 in monthly savings between housing, utility and transportation costs. Property owners have reported increased earnings of more than 60 percent in net income.