Prolific tech investor Index Ventures has led an $11m (£9.2m) series A round for London fintech firm Flatfair.
Other participating investors included Onefinestay founder Greg Marsh, former Savills boss Jeremy Helsby, Transferwise co-founder Taavet Hinrikus, Revolt Ventures and Adevinta.
Index has previously backed the likes of Facebook, Skype and Just Eat, among others.
Flatfair allows tenants to rent a new property without a deposit by securing the tenancy against a debit card, in exchange for a membership fee.
The City-based firm said it will use the funding to beef up its technology team with product engineers, data scientists and business development specialists.
Founded by alumni from Deutsche Bank, McKinsey and Google, Flatfair has established partnerships with real estate firms Spicerhaart, Touchstone and CBRE among others.
“Like much of Britain’s housing stock, its rental sector is stuck in the Victorian era,” said Franz Doerr, co-founder and chief executive of Flatfair.
“Thankfully, cutting edge payment technology can boost transparency, build trust and make instant move-ins a possibility.
Index Ventures partner Martin Mignot, who serves on the boards of Deliveroo, Revolut and Livi, will join Flatfair’s board.
“Around $300bn is tied up in deposits globally, so freeing up just a fraction of this money would make a huge difference to millions of renters who deserve a fairer and more transparent service,” he said.
“There is huge potential for technology to help real estate companies streamline operations and revenue management, while offering tenants a better, fairer service.”
Main image credit: Flatfair