Search Engine Searches for Funding

The Situation

Following two years of steady growth, NeighborhoodScout.com, a real estate website based in Woonsocket that lets home buyers search and find the best neighborhoods for them based on their personal preferences, tripled its revenues last year and was looking to grow.

The BDCRI provided funding in the form of a term loan that will help the company build its capabilities and compete strongly in a rapidly growing field.

About the Opportunity

NeighborhoodScout had developed a neighborhood search engine - based on 60 parameters that users can specify - which is superior to competitive websites. Since it launched, the website garnered favorable press on CNN and in key publications like Business Week, Home Buying for Dummies, and the Wall Street Journal.

While a superior quality product does not guarantee broader market acceptance, President Andrew Schiller and his team put together a detailed growth plan to support growth. Success would be linked to building awareness among home buyers and other people who are moving, and an enhanced the site to encourage return visits.

Why the BDCRI Got Involved

The BDCRI opted to provide a five-year $250,000 term loan, as part of a larger $600,000 funding package, because:

1. The company's business model, based on Realtor commissions and subscribers fees, provided a robust basis for growth.
2. Andrew Schiller showed that he and his team could execute their plan.
3. VP of Sales Andrew Couture brought a strong background in managing large corporate accounts and had developed key affiliate relationships for NeighborhoodScout.