Redfin Raises $10M More to Improve Customer Service, Expand, and Invest in R&D
Well, this does nothing to change the downward trend of early-stage software financings, but it’s good news nonetheless. Seattle-based Redfin, the online real estate broker and information discovery service, has announced a $10 million Series D funding, led by new investor Greylock Partners, the Silicon Valley venture firm formerly based in the Boston area. Existing investors Madrona Venture Group, Draper Fisher Jurvetson, Vulcan Capital, and The Hillman Company also participated in the round, which brings Redfin’s total funding to $30.8 million.
Redfin says it will use the cash “to scale its infrastructure for delivering extremely high levels of customer service, to expand into new markets and to invest in research and development.”
By most accounts, the company has had a very strong year, even as the real estate market has contracted and valuations have fallen. Redfin has generated its first profits, shipped what it says is the highest-rated iPhone app for real estate, and increased its website visits by more than 200 percent.
Glenn Kelman, Redfin’s CEO, talked about the significance of the new funding, and hinted at a goal of taking the company public. “Greylock’s experience developing some of the Internet’s most recognized consumer brands as well as its appetite for building large-scale public companies are a perfect fit for our ambitions,” Kelman said in a statement. “We believe that our ability to invest in technology and our consumer-first commitment give us a shot at reinventing a very fragmented, sales-driven real estate industry.”
Redfin was founded in 2002 and serves home buyers and sellers with real-estate listings, maps, analytics, tax records, and other information. Besides Seattle, it has operations in California, New York, Maryland, Massachusetts, Virginia, Washington DC, and other metro areas. Redfin recently rolled out a new version of its website, which includes near-real-time data and photos of recent home sales, as well as links to blog discussions of listings, all on a national scale.