This High School Dropout Sold Shipt To Target For $550 Million. His Next Startup Could Be Worth Double.
This High School Dropout Sold Shipt To Target For $550 Million. His Next Startup Could Be Worth Double.
Abstract
"Someone wants to move into an apartment in five days, we have to be able to acquire it and make it beautiful in a short period of time," he says, "It looks really simple on the outside, but it's very complex." As the way Americans live and work has changed, Landing offers its members instant access to move-in-ready apartments with the flexibility to rent for as short as one month. Cheaper than a hotel or a corporate apartment and more predictable than an Airbnb, Landing markets itself to Millennials with the flexibility to work remotely, as well as to others who don't want the hassle of figuring out housing and buying furniture for a temporary stay. The bulk of Landing's $200 million revenue comes from the 20%-to-50% markup that it charges over its cost of leasing apartments from owners of multi-family buildings including mega-landlords like Greystar and American Landmark. "We think we'll be doing $1 billion in revenue by 2025.and we'll still be just scratching the surface of the opportunity." Landing founder Bill Smith in one of the company's apartments in Birmingham, Alabama: "I can't rent apartments for $8,000 a month so the furniture needs to be the lowest cost possible and very high quality."JAMEL TOPPIN FOR FORBES Landing founder Bill Smith in one of the company's apartments in Birmingham, Alabama: "I can't rent apartments for $8,000 a month so the furniture needs to be the lowest cost possible and very high quality." Landing has raised $237 million in VC funding, including $75 million at a recent valuation of $475 million. Rather than sign leases with landlords upfront, risking vacancies if no one rents, Landing relies on software to list apartments first, then signs leases and sets them up with furniture within a few days once it has a renter. Kendyl Cochran, a 25-year-old business development director at Gartner, spent most of the past year living in Landing apartments with her boyfriend and dog after learning about the company on TikTok. After an initial Airbnb stay, they lived in Landing apartments in Atlanta, Baltimore, Austin, Dallas, Denver, Tucson and Salt Lake City, typically spending $2,200 to $2,400 a month on rent.
