Total amount raised
$839.6 Million
Latest funding date
4/1/2022
Location
Sonder has successfully navigated 12 funding rounds, attracting the support of 37 investors, including Talent Resources Ventures and TriplePoint Ventures. The company, which was listed under the ticker NASDAQ:SOND, raised its latest funding through a Post-IPO Debt round.
Keep reading to explore the intricacies of Sonder's fundraising journey and the investors backing this tech-driven hospitality platform.
What Is Sonder?
Sonder is a tech-driven hospitality company that offers unique, designer-detailed accommodations in cities around the world. The company provides a seamless, app-driven experience with features like keyless entry, fast, free WiFi, and 24/7 digital concierge services.
Based in San Francisco, California, Sonder has an employee count ranging from 1001 to 5000. The company is part of the Marriott Bonvoy program, allowing users to earn points toward free nights. Although the company is currently closed, it was publicly traded under the ticker NASDAQ:SOND and had raised funding through 12 rounds, with the latest being a Post-IPO Debt round.
How Much Funding Has Sonder Raised?
- Round Name: Series A
- Amount Raised: USD 11,050,000
- Date: February 2016
- Lead Investors: Spark Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and enhance service offerings.
- Round Name: Series B
- Amount Raised: USD 32,000,000
- Date: March 2017
- Lead Investors: Greenoaks, Greylock
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enter new markets and develop technology.
- Round Name: Series C
- Amount Raised: USD 85,000,000
- Date: August 2018
- Lead Investors: Greenoaks
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and business reach.
- Round Name: Series D
- Amount Raised: USD 225,000,000
- Date: July 2019
- Lead Investors: Tao Capital Partners, Valor Equity Partners, WestCap
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance service offerings and enter new markets.
- Round Name: Series E
- Amount Raised: USD 170,000,000
- Date: June 2020
- Lead Investors: Fidelity, Inovia Capital, WestCap
- Valuation at Round: USD 1.3 billion
- Motivation Behind the Round: To expand operations, business reach, and develop new functions and services.
- Round Name: Post-IPO Equity
- Amount Raised: USD 310,000,000
- Date: January 2022
- Lead Investors: The Gores Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance service offerings and expand market presence.
- Round Name: Post-IPO Debt
- Amount Raised: USD 24,540,000
- Date: August 2025
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To ensure financial stability and support ongoing operations.
Total Amount Raised: USD 857,590,000. Current Valuation: USD 1.3 billion.
Key Investors
- The Gores Group
- Details: The Gores Group is a global investment firm focused on acquiring and partnering with mature and growing businesses. Founded by Alec Gores, the firm has completed over 120 transactions since its inception.
- Investment Focus Areas: Technology, industrials, healthcare.
- Notable Investments: Verra Mobility, Hostess Brands, Twinkies.
- Fidelity
- Details: Fidelity is a multinational financial services corporation known for its investment management, retirement planning, portfolio guidance, brokerage, and other financial services. It is one of the largest asset management firms in the world.
- Investment Focus Areas: Technology, healthcare, consumer goods.
- Notable Investments: Amazon, Google, Facebook.
- Inovia Capital
- Details: Inovia Capital is a venture capital firm that partners with founders to build impactful and enduring global companies. The firm invests across various stages, from seed to growth.
- Investment Focus Areas: Technology, healthcare, consumer sectors.
- Notable Investments: Lightspeed, AppDirect, Clearco.
- WestCap
- Details: WestCap is a private equity firm that invests in growth-stage companies. Founded by Laurence Tosi, the firm focuses on technology-driven businesses.
- Investment Focus Areas: Technology, real estate, financial services.
- Notable Investments: Airbnb, Lyft.
- Greenoaks
- Details: Greenoaks is a global investment firm that invests in technology companies. The firm is known for its long-term investment approach and has backed several high-growth startups.
- Investment Focus Areas: Technology companies.
- Notable Investments: Stripe, Robinhood.
What's Next for Sonder?
As Sonder looks to the future, the company is poised to capitalize on the growing demand for temporary housing and urban real estate opportunities. With a significant $170 million Series E funding round, Sonder is well-positioned to expand its operations and introduce new services, targeting displaced individuals and those seeking better work-from-home setups.
Future fundraising opportunities appear promising, given the company's successful pivot during the pandemic and its current valuation of $1.3 billion. This financial backing could attract further investment, enabling Sonder to scale its operations and explore strategic acquisitions. However, challenges such as navigating city lodging regulations and maintaining high occupancy rates amidst fluctuating travel demand remain critical hurdles.
Use Clay to Get Funding Data
Sales professionals, leverage Clay’s platform to access comprehensive fundraising data on companies like Sonder and gather other critical business insights. Sign up for free to start transforming your sales strategy today.
