It's no secret what sectors are going to have the most difficulties during the economic crisis -- finance, autos and real estate, which have all had their issues of late. That's why it was interesting to see that
Roost Inc. a real estate-related Web site, raised $8 million in
funding on Tuesday.
The round was led by Shasta Ventures and included existing investors General Catalyst Partners, The Cross Country Group LLC and Geolo Capital, who together supplied the company's initial $5.5 million in funding.
As if anticipating our question, Shasta Ventures managing director Jason Pressman addressed the logic of funding a housing-related company during the current crisis in the Roost press release.
"Some may wonder why we would choose to invest in a real estate search company in one of the most challenging housing and credit markets in recent history," Pressman said."In this tumultuous time, many Americans are looking for an investment alternative to the stock market. Roost is able to provide the most accurate picture of a given housing market and therefore help consumers make truly informed decisions."
Roost offers both a search engine to help people find a place to live and a technology platform that it sells to real estate agents. As a sign of the times, it is now providing listings of foreclosed homes. --
David Shabelman See Dec. 9 press release from Roost
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