Spruce Closes $3 Million in Venture Funding
Investment to help provider of hotel-inspired services to apartment residents expand into new markets
Jul 17, 2019, 09:07 ET
HOUSTON, July 17, 2019 /PRNewswire/ -- Spruce, a comprehensive provider of hotel-inspired services to the multifamily industry, today announced it has closed a $3 million funding round. Fitz Gate Ventures led the round with Mercury Fund, Capital Factory and the Houston Angel Network also participating.
The invested capital will help Spruce expand its market presence outside of Texas, beginning with Denver. The funding will also enable the company to scale its sales and marketing capabilities and continue development of its software platform.
"We could not be more appreciative of the support from these outstanding investors," said Ben Johnson, founder and CEO of Spruce. "Since our founding, we have grown aggressively as more and more apartment communities have seen the demand for hotel-inspired services increase dramatically. We look forward to continuing our strategic, rapid growth with this funding that will play a critical role in that expansion."
Spruce offers a comprehensive array of hotel-inspired services to apartment residents, including:
- Daily chores
- Housekeeping
- Pet care (dog walking, pet sitting, etc.)
- Laundry and dry cleaning
Spruce is directly involved in the logistics and operations of its local service provider partners. Spruce mandates that all service professionals who represent the brand undergo background checks, meet insurance requirements, complete comprehensive training, demonstrate scheduling processes and meet high quality control standards. Every Spruce service provider is also required to wear Spruce-branded uniforms whenever they visit a Spruce-powered community. If residents have any questions or concerns regarding their service, Spruce has a dedicated national customer service team that provides full-time customer support via text, email and phone directly to residents.
Spruce's services are used extensively by residents. While conducting a recent analysis of internal data, Spruce found that half of the residents in Spruce-powered apartment communities activate their accounts soon after moving into the community. Typical Spruce customers spend on average $1,000 on Spruce services every year and have a 20 percent to 30 percent greater likelihood to renew their lease.
Spruce increases the appeal of moving into a community it services by offering an average $13,000 in annual move-in credits per community.
About Spruce
Spruce is a comprehensive provider of hotel-inspired services to the multifamily industry. The company currently provides daily chores, housekeeping, pet care, laundry and dry cleaning services to more than 200 select communities owned and/or managed by 13 of the 15 largest Texas apartment companies. Spruce is headquartered at Station Houston, Houston Hub for Tech Startups.
About Fitz Gate Ventures
Fitz Gate Ventures is an early stage venture capital fund which invests a majority of its capital in startups from the Princeton ecosystem. Through its 200 member "Friends of Fitz" advisory board comprised of Princeton alumni, faculty, administrators, trustees and students as well as the broader worldwide alumni network, the fund engages with the Princeton community to help it discover and diligence the best startups and then help its founders succeed (introductions to more capital, customers, mentorship). Fitz Gate's portfolio companies have been profiled in the New York Times, CNN, The Wall Street Journal, The Financial Times, Forbes, Vogue and Bloomberg. To learn more, please visit www.fitzgate.com.
About Mercury Fund
Mercury Fund is an early-stage venture capital firm. With over $300 million under management, Mercury focuses on entrepreneurs and technology innovation originating in the U.S. Midcontinent. Mercury's investment themes target SaaS, Cloud, and Data Science/AI platforms that make the industrial ecosystems of Middle America more competitive and efficient. Over a decade ago, Mercury recognized the rise of entrepreneurs and innovation in the underinvested Midcontinent. Mercury's venture investment strategy leverages the firm's network of midcontinent startup development organizations, corporate innovation partners, and co-investors to assist entrepreneurs with the resources they need to rapidly scale their businesses. For more information, please visit http://www.mercuryfund.com or follow @MercuryFund on Twitter.
About Capital Factory
Capital Factory is the center of gravity for entrepreneurs in Texas, the best state for startups. Last year more than 100,000 entrepreneurs, programmers and designers gathered day and night, in-person and online for meetups, classes and coworking. According to Pitchbook, Capital Factory has been the most active investor in Texas since 2013. For more information, please visit http://www.capitalfactory.com or follow @CapitalFactory on Twitter.
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SOURCE Spruce
