Evolve Vacation Rental Network Raises $80 Million
The rental management company announces new funding to support growth and invest in technology
Denver-based Evolve Vacation Rental Network announced an $80 million capital raise that closed in June, bringing the total in funding to date for the fast-growing company to $103 million. The round was led by funds and accounts advised by T. Rowe Price Associates Inc., including Winslow Capital Management, Foxhaven Asset Management and Arrowmark Partners.
Evolve takes a fresh approach to vacation rental management, delivering optimized rental income and unprecedented flexibility to a wide variety of owners in more than 500 markets throughout North America. The team plans to use the investment to support the triple-digital annual growth, enhance its core offerings and further the development of its tech-enabled services platform.
"We are fortunate to be surrounded by world-class capital partners who share our commitment to building and durable company that will make a lasting impact on the industry," says Brian Egan, CEO and co-founder of Evolve. "While this round is a significant milestone, we are only at the beginning of this journey."
The company, founded in 2011, has built a portfolio of more than 9,000 properties and secured more than $350 million in rental income for its owners. Evolve manages marketing and booking vacation rental properties, while providing homeowners with the option to configure on-the-ground services to their liking, including access to a vetted network of local partners. The company employs an industry-low booking fee of just 10 percent.
"Evolve is providing a cost-effective and performance-oriented service solution that's attracting new and experienced vacation rental owners alike," says Bob Mylod, managing partner of Annox Capital and Evolve board member. "We believe Evolve will be the clear market leader in managed services for the vacation rental industry."
Echoing that sentiment: "Evolve's value proposition appeals to a broad segment of second homeowners, and their model is build to scale rapidly," says Henry Ellenbogen, portfolio manager of T. Rowe Price New Horizons Funds Inc. "Given the critical need to professionalize supplier service and hospitality, we believe the company has the potential to become much larger over time."