Danish startup Landfolk secures €10.3M to disrupt Europe’s vacation rental market

Aarhus-based Landfolk, a Danish platform and community for handpicked second homes, announced that it has secured €10.3M in a Series A round of funding from EIFO alongside SEED Capital and Heartland. 

The funds will support Landfolk’s European market expansion, product innovation, and brand-building efforts. The company aims to become a leading lifestyle brand in the vacation rental market, aligning with the growing trend of mental wellness.

With over seven million holiday homes across Europe, many of which are vacant for more than 300 days a year, the demand for short-term rentals continues to grow, presenting an opportunity for Landfolk.

Jacob Bratting, Partner and Head of Tech & Industry investments at EIFO, says, “Landfolk enables high utilisation of housing assets and gives more people access to some amazing places across Northern Europe. It’s an obvious way to bring more tourism and more jobs to rural areas. Landfolk is a great example of a company that can become a beacon within the tourism industry in Europe.”

Handpicked holiday homes

Landfolk, founded in 2021 by a group of experienced co-founders who previously worked together at Airbnb, aims to improve the vacation rental industry. 

According to CEO and co-founder Christian Schwarz Lausten, modern travellers seek authentic experiences and do not want to compromise on aesthetics. Landfolk believes that the places people stay should be an experience in themselves.

In three years, the Danish startup has grown to offer more than 3,000 handpicked, premium holiday homes and expanded from Denmark into Norway, Germany, and Sweden. 

Despite this growth, only half of the homes that apply are accepted onto the platform, demonstrating Landfolk’s commitment to ensuring guests always enjoy the highest quality accommodations.

Co-founder Lausten, says, “Taking a break from the to-do lists and deadlines of everyday life is an essential part of the Landfolk experience. A vacation should soothe your soul and senses, and bring you closer to the people you love. Going out of the city to these rural places, where you can connect with nature is a wholesome experience to most. And it’s Landfolk’s DNA.”

Funds to scale across Europe

Landfolk has utilised a proven market strategy to access the underutilised supply of second homes in northern Europe. The company mentions that out of 1.3 million second homes, 85 per cent are not rented out and remain empty for an average of 300 days a year.

Landfolk is changing this by listing 70 per cent of homes that have never been rented before or are exclusively available on their platform. 

In response to rising guest demand, Landfolk plans to expand further into Europe, offering more sunny destinations and tapping into the growing short-term rental market.

The company has recently expanded its marketplace to include cleaning partners, automating all processes for hosts, cleaning partners, and internally.

Co-founder Lausten, says, “We’re a seasoned founder team and we probably have one of the most experienced and skilled product teams in Europe when it comes to building marketplaces.”

“This tech-driven approach ensures seamless experiences for both homeowners and guests and is instrumental to our success – especially when we think ahead in terms of scaling and expanding into new markets.”