RentWiki.com Raises Multi-Million Dollar Round
April 14, 2010 – 11:30 am
http://rentbits.com/blog/rentwiki/rentwikicom-raises-multi-million-round
RentWiki.com, an apartment social search engine, has secured a multi-million dollar financing round from Antares Capital. Prior funding investments totaled $2.43M from internal and strategic investors including major REITs. This brings total funding to over $4 Million.
"We have an excellent track record of investing in smart, successful businesses," explained Randy Poliner, Antares Capital partner and new addition to RentWiki's board of directors. "We're selective in the companies we invest in and they typically have very strong management teams and solid business models. RentWiki is no exception."
"Our business has reached the point where we have proven the model. Consumers love the social content that Rentwiki offers and clients have embraced our cost effective pay-per-lead model. This funding round gives us the opportunity to invest more heavily in the traffic we need to drive more quality leads to our clients as well as expand our consumer content," said Robert Turnbull, president of RentWiki.com.
The additional funding will be used to continue growth and buy traffic and leads for clients they already have orders for.
In November 2009, CEO Jamie Gallo gave an investor presentation at the 2009 Venture Atlanta.
The main points are below:
Team - More than 12 years of apartment experience. Founded 2 of the largest search sites online today, ApartmentGuide.com and Rentals.com.
Opportunity - 100 million renters in the US. Growing rapidly with economic conditions and large generation Y coming into the system. Only site incorporating social media into the apartment process.
Industry - $1.7 trillion industry. Historically there has been two business models, Subscription and Pay Per Lease. The industry is asking for Pay Per Lead and RentWiki offers this.
Spending in category is expected to be nearly $3 billion by 2011. Online alone is expected to be $1 Billion.
Over 17 million properties in the US alone with significant opportunity outside US.
Model - Sells renter leads to major REITs on a CPL (Cost Per Lead) basis.
Long Term Competitive Advantage - Local, neighborhood and user generated content.
Financial Plan - Have met financial plan every month for last 15 months.
Plan is to get from $400,000 in revenue to $8,000,000 by 2010.
Currently have $10.3 million in booked (potential) revenue. Need funding to put gas in the tank to drive those leads.
Raised $2.43 Million primarily from strategic investors and REITs. Expects Profitability by July 2010.