Will bootstrapping or big VCs win the RRM arms race?

We’re closely watching the rental relationship management (RRM) space as the rental market heats up given rising foreclosures and a growing segment of buyers opting for renting in uncertain economic times. Money is now being thrown at RRM companies but some funding announcements are dramatically larger than others.

For example, RRM software company Kahoots.biz was established in Boston in 2006 and has recently been acquired by one of their competitors, RentJuice which was founded in 2009 and recently received Series B funding of $6.2 million after receiving $325,000 in Debt funding in March 2010.

RentJuice (plus Kahoots) offers listing syndication to real estate search sites like HotPads and Trulia as well as lead tracking and contract generation and after acquiring Kahoots, they’ve announced reduced pricing.

RentJuice currently serves Chicago, New York, Boston and Miami and plans to open offices in Boston.

RRMs making big moves

We are intrigued that Kahoots is acquired by the well funded RentJuice while YouGotListings sees small seed funding in the amount of $150,000 yet claims 75% of the existing Boston marketshare. Will big dollars or bootstrapping win the race toward national expansion? It will be an interesting space to watch!