To make their case, they write that $50 million was invested in real estate related businesses on the internet by angel investors, private equity companies and venture capitalists and they cite 3 other web-based real estate firms who have received venture capital in the last few years, Zillow, Trulia, and Redfin.
However, none of those firms are profitable yet.
Probably not the best examples to give while trying to raise funds. Anyway, who wants to invest in other people’s misery? Building a business model whose success lies in our economy being in the toilet is not something I would think would garner a lot of support.