VerticalResponse, which provides self-service digital marketing solutions, has acquired Roost, a privately held social media marketing technology company based in San Francisco.
Financial terms of the deal were not disclosed. → Read More
The real estate bust wasn’t kind to Roost, which started out as a real estate search engine. But CEO Alex Chang took the $8 million he raised in late 2008 and convinced his investors to back him down a completely different path: a service for creating and managing social media marketing campaigns for local businesses.
Roost relaunched in the middle of last year, first going after the 25,000 real estate agents who used the original Roost. Then last March, Chang opened up Roost to other local businesses. Roost taps into Facebook and Twitter, and helps restaurants, auto dealers, non-profits and others create social media campaigns in 20 minutes on a Sunday night. → Read More
The economy is in the hole, and real estate is in an even deeper hole. What better time to invest in a real estate search engine? Shasta Ventures just led an $8 million series B financing in Roost, a real-estate search engine that is grabbing data from MLS listings (actually from something called the IDX, or Internet Data Exchange, which is a close proxy to MLS listings). As a result, Roost claims to have more comprehensive and accurate listings in the cities it covers than competing real-estate search engines such as Trulia and Zillow.
Yet Roost’s traffic barely registers. It is much smaller than Trulia, Zillow, or Redfin (which I’ve charted as a comparison below because Redfin also is not yet nationwide). → Read More
Venture capitalist Josh Kopelman has stated that he likes startups that shrink markets – “We love investing in technologies and business models that are able to shrink existing markets. If your company can take $5 of revenue from a competitor for every $1 you earn – let’s talk!” And while he isn’t an investor in Seattle-based real estate startup Redfin, I’m pretty sure he likes their business model. The company is doing its best to completely remove real estate agents and brokers (and their absurd fees) from at least half of a home sale. If you use them when you buy a home, they reimburse 2/3 of the broker fee to you, keeping 1/3 for themselves. 60 Minutes covered the company last May, which led to a surge in business. CEO Glenn Kelman told me today that, since launching in February 2006, they’ve been involved in 1,500 transactions and have reimbursed $12 million to customers. The average refund is $10,000. The company had 2007 revenues of $5 million, he says. They’ve just launched a new version of the website that includes more frequent MLS updates and the ability to group home sales by neighborhood and download the data. They are also providing deeper data on homes currently on the market as well as historical sales (they compete with a number of other startups in search, including Zillow, Trulia and Roost). If you want to use Redfin, check first to make sure they cover your geographic area, which include the San Francisco/Bay Area, San Diego, Orange County, LA, Seattle, Washington DC/Baltimore, and Boston. Chicago is coming soon. CrunchBase Information Redfin Zillow Trulia Roost Information provided by CrunchBase → Read More
Just when you thought the real-estate bubble had burst and the economy was going to hell, here comes another real-estate search engine. Today we see the launch of Roost, a real-estate site inspired by the lean look and feel of travel search engine Kayak. In fact, two of Roost’s board members and lead investors from General Catalyst Partners are also on the board of Kayak. Roost was founded in May 2007, and raised a $5.5 million A round. What makes Roost different is that, instead of trying to list all properties in the U.S. as Zillow or CyberHomes do, or take in feeds from individual real estate brokers as Trulia does, it is negotiating with Multiple Listing Services (MLSs) in each metro area to get a comprehensive set of houses on sale. Redfin also taps into the MLS. (The MLS is what real-estate brokers contributeto and use to find homes on the market, and up until recently MLS data was well-guarded from the Web). Roost launches with more than a dozen cities/MLSs, including Atlanta, Boston, Chicago, Dallas, Philadelphia, San Diego, and Washington, D.C. (Notably absent are San Francisco and New York). Roost is a real-estate search engine with comprehensive for-sale listings in the markets it covers, including for-sale-by-owner listings (which it does not show side-by-side with MLS listings because of industry restrictions). You can see all the photos for a particular house without leaving the search engine, you can see results on a map, and there are sliders (for price, bedrooms, square feet, etc.) to tweak results. It is a pretty-straight-forward site without a lot of bells and whistles. “We are laser focused on search,” CEO Alex Chang tells me. “We are not doing valuations. We are not creating heat maps. We are doing high-performance search.” On the back-end, Roost hosts a directory of real-estate broker sites and delivers search traffic to those sites based on a combination of natural results and paid search. “I send qualified traffic to the broker,” says Chang. “They are buying clicks from me.” That is the business model. But Chang is going to have to crow pretty loud to get noticed by prospective home-buyers who have many other real-estate search engines to choose from these days, and maybe less incentive to go house-hunting in the first place. CrunchBase Information Roost Trulia Zillow Redfin Cyberhomes Information provided by CrunchBase → Read More
