NEW YORK, August 1, 2019 — Latch, maker of the first full-building access system, announced today that it completed a $126 million financing to accelerate its growth in the new construction and retrofit markets—providing residents and property managers with unprecedented flexibility and security through smarter hardware, software, and services. The company also announced the addition of executives from Apple, PayPal, and the Four Seasons to their Board and leadership team.
The round was closed with a lead check from growth equity firm Avenir alongside existing Series B investors including Brookfield Ventures, Lux Capital, RRE, RxR Realty, Tishman Speyer, Third Prime, Camber Creek, and Primary Venture Partners. The financing comes less than nine months after the company raised $70 million, and completes the Series B raise.
Latch launched in 2017 with a fully integrated hardware and software solution—and today, one in 10 new apartments in the United States depend on Latch products to meet the needs of residents and property managers. With Latch, residents can use a smartphone, keycard, or code to unlock their door, and share temporary credentials with visitors and service providers. Using a single web-based platform, property managers can easily onboard new residents, share secure access with staff and maintenance, and cut costs associated with lockouts and rekeying.
According to CEO and Co-Founder Luke Schoenfelder, the raise is the result of faster-than-forecast product adoption as real estate developers look to unlock efficiencies and address the demands of residents seeking increased convenience and peace of mind. The financing will enable Latch to scale its new construction engagements with industry leaders including Brookfield Properties, RXR, and Prometheus; support expansion into the broader retrofit market; and set the stage for future services offerings.
“We’re thrilled to partner with Avenir to catalyze the next phase of Latch’s growth,” said Schoenfelder. “Equipping doors with our devices is just the first step toward the future we imagine for the modern building—one where access enables totally new services and experiences. We’ve created a best-in-class solution that helps developers increase the value of their properties, makes life easier for building owners and operators, and will provide residents with new possibilities.”
“Latch is at the forefront of the paradigm shift that’s taking place in the access space,” said Andrew Sugrue, Partner at Avenir. “The relationships between people and the places they call home has fundamentally changed, and we are excited to partner with a team that has always seen digital locks as more than just a means for entry.”
To support this growth, Latch has welcomed to its Board of Directors Allen Smith, former President and CEO of Four Seasons and a longtime real estate investment executive. Latch has also announced three key hires: David Austin, a long-serving Apple product development expert who joins as SVP of Partnerships and Integrations; Michael Barrett, who was previously the Chief Information Security Officer at PayPal and who will help shape the company’s robust privacy and security practice as CISO; and Garth Mitchell, a seasoned investment professional who joins as SVP of Finance and Strategy.
Latch is the first full-building smart access system. The company launched in 2017 with a fully integrated hardware and software solution for multi-family properties—and today, 1 in 10 new apartments depend on Latch devices to meet the needs of residents and property managers. With Latch, residents can use a smartphone, keycard, or code to unlock their door; share temporary credentials with visitors and service providers; and enjoy unattended package delivery from UPS and other national carriers. For property managers, a single web-based platform makes it easy to let the right people in, handle lockouts, and oversee staff from anywhere.