HomeSpace Locks Down $30 Million in Financing

HomeSpace Inc. Monday completed its
second round of financing totaling $30 million.

A leading online provider of mortgage, real estate and home services,
HomeSpace secured the majority of the funding from Pequot Capital
Management and Moore Capital. Existing investors include Global Retail
Partners and Oak Investment Partners, who increased their offerings in this
round.

Terms of the deal were not disclosed.

HomeSpace offers consumers
real estate brokerage services to buy or sell a home, a full line of
mortgage products and a range of home services such as moving and
insurance, all at below-retail prices and with high service levels.

The proceeds of the financing will be used to develop its Web site and to
fund the company’s growth. Plans include expanding the company’s exclusive
relationship with Costco, penetrating its growing base of affinity and
corporate clients, and continuing to broaden its home services offerings.

“The company has extensive experience in mortgage origination and real
estate services, and has already developed
important strategic relationships such as Costco Wholesale,” said Gerald Poch, a principal of Pequot Capital Management.

“The company has identified a significant under-served market where
consumers can use the HomeSpace site as a one-stop shop for important home
related transactions.”

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