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Venture Capital Travel Real Estate

Sonder and Knotel Near Deals as Real Estate Startups Snap Up Funding

A new breed of real-estate focused startups is attracting a sudden flood of venture money.

The group includes Sonder, a travel rental firm which is finalizing a deal to raise more than $200 million from investors such as Fidelity Investments, according to people familiar with the matter. Just days ago Lyric, a short-term rentals manager, announced it had raised $160 million in equity and debt from Airbnb and other backers. Knotel, an office rental firm that competes with WeWork, is expected to soon announce a financing round in the hundreds of millions of dollars, according to people briefed on the matter.

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