From this site:
“HotPads Inc., a Washington, D.C.-based online apartment rental marketplace, has raised $2.3 million in Series A funding, according to a regulatory filing. No institutional backers were listed.”
I just don’t get it. Why do they need 2.3 Million dollars! Wow, what is going on in my industry? And how did they talk investors into giving them that much money?
I looked over at the HotPads blog but I didn’t see anything about this on their site.
On HotPads you can list for free. So my question is how do they plan on paying their investors back if they are giving it away for free? Do they plan to go with a Zillow business model where provide ads on their site?
I gotta think that I must be missing something here. Those investors that handed over that kind of cash surely know more about the online rental industry than I do.
My business plan is to keep my company as small and lightweight as possible. I guess I am going the opposite direction from many other companies in this industry.
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1 user responded in this post
In order to pay off $2.3 million, they’d have to permit a lot of advertising. Too much advertising leads to a poor user experience.