ROOM8 announces funding

ROOM8, “a byproduct of the CSAA Insurance Group’s Innovation initiative” helping users match with compatible roommates, find an apartment and get customized renters insurance, has announced initial funding and plans for expansion to include new hires and increased platform capabilities. Backers in the undisclosed round include Storm Ventures, Avanta Ventures, Alpana Ventures, and Plug and Play Ventures.

Initially led by ex-Insight & Innovation Leader of CSAA Insurance Group, David Underwood, ROOM8 is now led by Jessica Chen, Alexis Valerio, and Dan Mathews, and is a team of 9 according to LinkedIn. The app allows users to browse potential roommate profiles, video-chat with other users, review a real-time inventory of apartments and schedule tours with landlords. The team is working to build a “more comprehensive alternative to the myriad of apps and websites” Millennial and Gen Z renters have had to traditionally rely on when beginning their rental journey.

“We’re using technology to solve two of the biggest problems Millennial and Gen Z renters face today: putting nearly half of their income toward rent while balancing enormous student debt, and the sheer lack of solutions to address all of their unique rental needs. It can take months to find the right place and roommate, and even then, there can be more hoops to jump through before move-in. ROOM8 is solving these issues by streamlining the process and finding compatible roommates to help cut rent in half.” – Jessica Chen, ROOM8 CEO.

The app, which enjoys a 4.6 and 3.8-star rating on the App Store and Google Play respectively, had some UX/UI design problems early on, according to Danielle Oppendike, a former UX designer at CSAA. “When I joined the ROOM8 team we quickly discovered that the UX/UI design of the app was not working to it’s potential, users were dropping off, and property management companies were frustrated with their experience using the app.”

Bottom Line: Going beyond insurance.