Current Investors Also Participate in Series C Funding
SEATTLE - Jul. 18, 2007:
Online real estate broker Redfin Corporation today announced a $12 million series C financing led by Draper Fisher Jurvetson. Madrona Venture Group, Vulcan Capital, BEV Capital and The Hillman Company, investors in previous financings, also participated in this round. Redfin has raised $20.8 million to date. In conjunction with the funding, Redfin launched its online real estate service in the Washington, D.C. and Baltimore areas.
Redfin will use the proceeds to continue national expansion, with plans to open in Chicago this year, and to further the company's investment in its market-leading website for buying and selling homes.
Since Redfin's last round of financing in May 2006, the company has completed more than $350 million in real estate transactions, saved its home-buying customers nearly $6 million in commissions, increased revenues by more than 2,000 percent, expanded into four new markets, and been featured on "60 Minutes."
As part of the funding, DFJ partner Emily Melton will join Redfin's board as a director. Melton brings to the board experience opening new markets for another Seattle-based consumer start-up, InSpa.
"More than ever, the Web provides a deep understanding of a home and its neighborhood, which has empowered consumers to take charge of the home-buying and -selling process," said Melton, who has been monitoring Redfin's progress since early 2006. "As one of the only companies actually brokering transactions online, Redfin is driving this trend to its logical conclusion, delivering the most value to the consumer, and the most profound change within the real estate industry. With more than $60 billion in annual commissions at stake, the opportunity is enormous."
"We expect this to be our last round of venture financing, so we looked for a guide on the long journey ahead who could help us generate profits and lead our market," said Redfin CEO Glenn Kelman. "DFJ's commitment to a consumer-centered business, its connections to Silicon Valley's most advanced technologies, and its appetite for huge, competitive markets made us natural partners. We're especially delighted to have Emily on board."
About Draper Fisher Jurvetson
Draper Fisher Jurvetson is the leading venture capital firm with global presence through a network of affiliated funds, with offices in more than 30 cities around the world and more than $5 billion in capital commitments. DFJ's mission is to identify, serve and provide capital for extraordinary entrepreneurs anywhere who are determined to change the world. Over the past twenty years, DFJ has been proud to back approximately 500 companies across many sectors including such industry changing catalysts as Hotmail (acquired by MSFT), Baidu (BIDU), Skype (acquired by EBAY), United Online (UNTD), Overture (acquired by YHOO), Interwoven (IWOV), 411 (acquired by YHOO), Parametric (PMTC), and Digidesign (acquired by AVID).
About Madrona Venture Group
Madrona Venture Group is a top-tier venture capital firm that brings together the vision, resources, experience, teams and strategic relationships to build the next generation of leading technology companies in the Pacific Northwest. Since 1995, Madrona has repeatedly demonstrated an ability to partner with high-quality management teams to create value together. Madrona's veteran team focuses on early-stage investing in Internet, software, wireless and research commercialization. Portfolio companies leverage Madrona's expansive network of relationships with technology thought leaders, established and emerging companies, channel partners, financial institutions and universities. Madrona Venture Group manages over $400 million and has invested in great companies such as Amazon.com, Isilon Systems, Classmates.com and iConclude. For more information, visit www.madrona.com.
About Vulcan Capital
Vulcan Capital is the private investment group of Vulcan Inc., the organization founded by Paul G. Allen in 1986 to manage his personal and professional endeavors. Vulcan Capital oversees a multibillion-dollar portfolio across diverse industry sectors and investment asset classes. Investments range from early stage venture investments to public entity value investing, leveraged buyouts, acquisitions, and distressed situations. Vulcan Capital's mission is to produce superior returns over the long-term across a diversified investment portfolio. Visit Vulcan Capital online at capital.vulcan.com.
About BEV Capital
BEV Capital is a specialized venture capital fund focused on consumer-oriented businesses. The core of their business is investing in consumer companies. This includes retailers, Internet businesses, consumer products, consumer services, media, and restaurants. BEV Capital also invests in supporting technologies for consumer companies such as marketing software and services, Internet technologies, retail IT, information services, and analytics. BEV operates on the premise that superior marketing and sales effectiveness are critical to building a successful long term business. BEV works closely with its portfolio companies to develop the right sales and marketing strategies to maximize long term success.