RadPad Raises $1 Million Seed RoundTuesday, March 18, 2014
RadPad, a rental search app, announced today it had raised $1 million in convertible notes in a seed round led by Menlo Park’s Deep Fork Capital.
The Venice company had previously raised $1 million prior, according to Crunchbase, a database that tracks tech fundraising around the world.
RadPad, which currently is only marketed in Los Angeles, will use the investment to boost its presence in other parts of the country. Jonathan Eppers, founder and chief executive, said the app works outside of Los Angeles but the company will be using the money to increase demand in other cities.
“Once we tip L.A., we’ll look at one or two cities outside L.A.,” Eppers said.
RadPad, which has six full-time employees and four part-time, allows people to search for rental apartments and houses through a phone app. The app will soon offer prospective tenants services for filing applications and leases. Also, if a person finds a property he likes, he can contact the landlord directly through the app.
“If you’re east of the 405, we have more rentals than Craigslist and Westside Rentals,” Eppers said. “If you’re looking at the people who use our platforms, 80 percent are from mobile. We have over 20,000 renters that use RadPad.”
Santa Monica’s Westside Rentals has eight offices in Southern California and 13,000 renters and landlords using it, though its coverage area is smaller than RadPad’s national reach. One-year-old RadPad is free to use for now unlike Westside, which charges renters $60 to $350 for its services while they’re searching.
However, Eppers said the company plans to monetize in summer and will charge its customers for processing credit scores and submitting rental applications once those services are available.