El Dorado Hills startup HomeZada will announce Tuesday that it has closed its first round of financing, raking in $2.1 million in capital over the summer.
Founders Elizabeth Dodson, John Bodrozic and David Ing invested some of their own money, but they also secured funds from the Folsom-based Moneta Ventures, which reported in June that it had $19.3 million to invest.
HomeZada’s three founders were instrumental in building Folsom’s Meridian Systems and used a portion of the money from its sale to software developer Trimble Navigation to seed their new venture.
With HomeZada, homeowners can store inventories, create a budget and plan for home-improvement projects, plus keep warranties and more at their fingertips. The HomeZada team stores everything in a data server where it can be accessed at any time.
Never miss a local story.
“We always knew we would need capital to accelerate our growth,” Dodson said. “What happened was we came to a point where we said to ourselves, ‘Now is the time. People are waking up to this space.’”
The company uses a “freemium” model, where users get some content and services for free but must pay for others. In HomeZada’s case, users can compile their home inventory in the cloud-based system, insuring they will have a record in the event of a disaster. For $5.95 a month or $59 a year, they can monitor home maintenance tasks, create a plan for home improvement projects and manage home-related finances.
While online freemium sites typically convert 3-4 percent of their users to premium membership, Dodson said, HomeZada has a conversion rate of 10-12 percent.
“We have tens of thousands of users using this product around the world,” Dodson said. “Approximately 85 percent of them are in the United States, and they’re in every state across the country.”
Call The Bee’s Cathie Anderson, (916) 321-1193. Follow her on Twitter @CathieA_SacBee.