MyNewPlace, an online apartment marketplace, has raised $12 million in a second round of investment, the company reported today. Silicon-Valley based investment firms Sutter Hill Ventures and Split Rock Partners led the latest financing round.
The company will use the injection of capital to expand its database of apartment listings, which already numbers about 6 million, the company reported, and also plans to use the money to pay for “an increased level of online marketing to attract renters to its Web site.”
The site has a minimalist, straightforward design and offers interactive mapping in its property searches. Searches can be customized by a range of factors, including specific amenities, rental rate and the number of bedrooms.
For property owners, the site offers a pay-per-performance ad model. Companies that list their properties at MyNewPlace pay the company a fee for signed leases that are generated from the Web site, and renters who lease a property that they find at the site receive $100 as a rebate for using the site.
“The online apartment rentals market is very crowded and competitive, however MyNewPlace’s strong apartment industry relationships and credibility, which has allowed it to sign owners and managers for its service significantly faster than any company in the industry — coupled with the expertise of its management team — convinced us that this would be a very attractive investment,” said Jim Simons, founding managing director of Split Rock Partners, who will be joining MyNewPlace’s board.
“We are very pleased to have Sutter Hill Ventures and Split Rock Partners lead this round, given their expertise in online consumer services and track record of success with fast-growth companies,” said John Helm, CEO and founder of MyNewPlace.
Based in San Francisco, MyNewPlace was founded in 2005 by Helm, who was also the founding CEO of AllApartments/SpringStreet. That site was sold to Homestore in 1999.