Hot 25 Travel Startups for 2023: Nectar

Nectar

Headquarters: Atlanta

CEO: Derrick Barker

Website: Nectar

Founding date: 2021

Investment: $2.75 million in equity, $27 million in debt

Nectar provides specialized financing solutions for professional short-term rental and commercial real estate owners, managers and investors. We specialize in cash-flow-based financing and being the fastest and most flexible option in the market for managing various capital needs.

PhocusWire coverage:

• Nectar nets $25M credit facility to help rental operators
• How new short-term rental marketplaces are wooing investors
  
  

Co-founders Brittany Mosely and Derrick Barker

Strategic goals for 2023

We are laser-focused on identifying the top short-term rental owners and managers in the country and being their go-to financing partner. We would like to form strategic affiliate relationships with the lenders, agents and service providers who are working with those operators and add meaningful economic value to them by helping their clients grow and improve their portfolios. Our goal over the next year is to build a $75 million portfolio of advances to a geographically diverse group of top-tier operators.

Lessons learned since founding

We have found that as real estate entrepreneurs grow from “mom and pop” to professional operators, their financing needs change and accelerate. During this time period, the capital markets actually become less efficient and more dilutive as the leverage that lenders provide decreases and friends-and-family capital begins to fall short of growing equity requirements. Being able to provide fast and flexible capital along with having a network of service providers to be able to help operators level up their financial operations adds considerable value as these growth-oriented companies build their portfolios.

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