|May 31, 2006|
|Redfin Announces $8 Million in Series B Funding|
Vulcan Capital, BEV Capital and The Hillman Company Join
SEATTLE - May. 31, 2006:
"Vulcan looks for companies that can bring disruptive technologies to extremely large markets," said Vulcan Capital's Peter Cochran. "Virtually every other Internet real estate business is focused on preserving the status quo business model of the traditional brokerages. Redfin is trying to change the game, and the company has demonstrated early but significant success at doing so."
The financing builds on strong momentum in Redfin engineering and customer service. After only its second full month of operating an online service for real estate consumers, Redfin has managed over 40 pending or closed Seattle-area home sales, worth in aggregate over $15,000,000, with 100% customer satisfaction. The company plans to invest new funds in national expansion, growing beyond the Bay Area to Los Angeles and San Diego this summer, and nationwide over the next year. Redfin also released powerful new map-driven analytics, which has helped to triple traffic over the past five months.
"The financing syndicate is remarkable not simply for its resources but also for its expertise in helping us to scale our business," said Redfin CEO Glenn Kelman. "Vulcan and Hillman Company have both technology and real estate investment experience, whereas BEV Capital invests exclusively in consumer-focused businesses."
"Our goal for our first six months of venture-financed operations was to expand the management team, introduce a market-changing business model, and prepare for national growth," said Paul Goodrich, Madrona Venture Partner and Redfin Chairman. "We accomplished all of this on less than $1 million of spending. With $8 million in new capital, Redfin now has the resources to innovate and expand on a completely different scale."
"Redfin has always been run on a shoestring," said Redfin Founder David Eraker. "But the capital raised in this round gives us the resources to change a $61 billion market."
About Vulcan Capital
Vulcan Capital is the private investment group of Vulcan Inc., the project and investment management company 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. BEV invests in Internet companies, retailers, consumer products, consumer services, and media. BEV also invests in supporting technologies for the consumer sector, such as marketing software, Internet technologies, and information services. 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.
About Madrona Venture Group
Madrona Venture Group, headquartered in Seattle, is a top-tier venture capital firm that brings together the resources, experience, teams and strategic relationships to build the next generation of leading technology companies in the Pacific Northwest. Over more than 10 years, Madrona has repeatedly demonstrated an ability to recognize high-quality teams and actively help them maximize their potential. 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 and channel partners, financial institutions and universities. Madrona Venture Group has over $400 million under management and invests in companies such as Impinj, Isilon Systems and ShareBuilder. For more information, visit www.madrona.com.