Financial fraud is a huge problem in the US rental market, costing property managers up to billions a year in foregone rent and eviction costs. The COVID-19 pandemic has only exacerbated this problem: 63% of property managers reported an increase in the number of fraudulent pay stubs submitted since the onset of the pandemic.(1)
Snappt’s founders, both property managers for over a decade, experienced this challenge firsthand in their own units. When looking for a solution to combat financial fraud, they realized all the options on the market focused on general tenant screening (credit scores, background checks) and didn’t address their need to validate the financial document submitted.
Snappt is the first offering on the market to deliver an easy-to-use, packaged software to authenticate bank statements and pay stubs. The process is simple: rental applicants receive a link to Snappt’s document portal and upload their financial documents, and leasing teams receive authenticity reports within 24 hours.
The product is extremely effective at identifying fraud and has dramatically reduced losses from eviction and foregone rent. Snappt identified financial fraud in over 12% of rental applications in 2021, preventing over $100M in bad debt for its customers. In addition to identifying fraud, Snappt deters future fraudulent applications because people are aware it is being checked.
Given the market need, Snappt enjoyed explosive growth in 2021 and has been adopted by the top property management firms in the US. Once implemented in a few properties, customers quickly see the value and expand to others in their portfolio.
Insight Partners is excited to lead Snappt’s $100M Series A and support them in the next phase of their growth. The opportunity is huge, both within the US rental market and other industries suffering from financial fraud, and we could not be more thrilled to back a strong team of domain experts hungry to tackle this problem.
1-Entrata “Fraud: A Growing Threat to the Property Management Industry”