( Knight-Ridder Open )
Jul 25, 2006 (The Seattle Times - Knight Ridder/Tribune Business News via
COMTEX) --
Zillow.com attracts offers the way a low-priced home lures buyers in Seattle.
The Seattle company, which provides estimates of home values based on
publicly available information, is disclosing today that it received $25
million in a second round of venture capital.
To date, the company has raised $57 million, a staggering amount considering
it launched its product only five months ago, in February.
Chief Financial Officer Spencer Rascoff said Zillow was not looking for
money, but that it decided to take the offer so it can grow faster than
planned.
Boston-based PAR Capital Management led the round of funding after it
contacted Zillow about making an investment, Rascoff said. Zillow's previous
investors, Benchmark Capital and Technology Crossover Ventures, also
participated in the round, which took two only weeks to close.
"There was no formal process," Rascoff said. "In fact, I wouldn't call it a
process. It came together really quickly."
PAR typically invests in publicly held companies, but Rascoff said the fit
was natural and consistent with Zillow's other investors. PAR had previously
invested in Expedia, which was founded by Rich Barton, Zillow's chief
executive. Zillow's other investors also had a close relationship with Barton
before investing.
Rascoff said Zillow received attention because it is doing well at getting
customers and advertising. The site receives about 2 million to 3 million
visitors a month. In addition, it has about 50 direct relationships with
advertisers and thousands more through Google ad links.
With the additional funding, the company plans to add at least 40 employees
to its staff of 118. Rascoff would not say what development projects the
company was working on.
"We are being a little bit tight-lipped about what's coming next with
respect to the product, but we are constantly trying to improve the quality
of the underlying data," he said.
Currently, Zillow provides valuations on 67 million U.S. homes, and claims
an accuracy of plus or minus 5 percent in the Seattle market. The company
would not disclose any of its financials. Other companies diving into the
online real-estate business locally include Seattle-based Redfin and
Kirkland-based HouseValues.com.
Zillow is the second Seattle company in the past two weeks to get funding
after investors approached it. Seattle-based Jobster, which assists with
online recruiting, raised $18 million, in part, from the venture arm of Reed
Elsevier.
Rascoff said investors are interested in the "big disconnect" between the
amount of advertising dollars being spent online and the amount of time
people spend online compared with other mediums. "There's a lot of wind at
your back in the advertising space," he said. "We are well positioned."
VENTURE INVESTMENT TREND ENCOURAGING
Venture-capital investing in the U.S. and Washington state in the second
quarter hit levels not seen for several years, according to The MoneyTree
survey being released today.
In the U.S., $6.35 billion was invested in privately held companies in the
second quarter, up 2.4 percent from the prior quarter. In Washington, $311.6
million was invested, up 15.7 percent from the first quarter. The quarterly
results had not been as high in the U.S. since 2002, or in the state since
2001.
The increases are a sign that investors are optimistic, analysts said during
a MoneyTree conference call Monday.
The MoneyTree survey is compiled by PricewaterhouseCoopers, Thomson Venture
Economics and National Venture Capital Association.
To see more of The Seattle Times, or to subscribe to the newspaper, go to
http://www.seattletimes.com.
Copyright (c) 2006, The Seattle Times
Recent Z News
- Move over, gyms and pools: Renters want pet areas and happy hour • PR Newswire (US) • 09/19/2024 12:00:00 PM
- Investors Anticipate Retail Sales Data and Fed Decision; Oil Prices Dip as Investors Weigh U.S. Production • IH Market News • 09/17/2024 10:42:43 AM
- Mortgage payments fall lower than rent in 22 of the 50 largest US metros • PR Newswire (US) • 09/16/2024 11:30:00 AM
- Rate drops, more inventory add intrigue to housing 'offseason' • PR Newswire (US) • 09/12/2024 09:00:00 AM
- Zillow's AI-powered home search gets smarter with new natural language features • PR Newswire (US) • 09/04/2024 01:00:00 PM
- Zillow Group to present at Goldman Sachs Communacopia + Technology Conference • PR Newswire (US) • 09/03/2024 08:05:00 PM
- Nick Bailey Joins T3 Sixty as Chief Real Estate Officer • PR Newswire (US) • 08/29/2024 03:00:00 PM
- Affordable renter-friendly home improvements that add value • PR Newswire (US) • 08/28/2024 12:00:00 PM
- Zillow Group hires Soumya Tulloss as senior vice president of agent sales • PR Newswire (US) • 08/22/2024 08:05:00 PM
- Sellers lose their advantage, but lower rates may revive housing market competition • PR Newswire (US) • 08/15/2024 12:00:00 PM
- One-third of property managers are offering concessions as rental market cools • PR Newswire (US) • 08/12/2024 12:03:00 PM
- Bumble Plunges 36% on Weak Revenue; Warner Bros. Reports Significant Loss; Digital Turbine Surges 18%, and More in Earnings • IH Market News • 08/08/2024 09:53:55 AM
- Zillow Group Reports Second-Quarter 2024 Financial Results • PR Newswire (US) • 08/07/2024 08:05:00 PM
- Zillow Group Promotes Jeremy Wacksman to CEO • PR Newswire (US) • 08/07/2024 08:05:00 PM
- Luxury home values are rising faster than typical homes for the first time in years • PR Newswire (US) • 07/31/2024 12:00:00 PM
- A $1 million starter home? It's the norm in 237 cities • PR Newswire (US) • 07/25/2024 12:03:00 PM
- Top 10 No-Demo Renovation Projects of 2024 • PR Newswire (US) • 07/23/2024 12:00:00 PM
- Zillow Group to Announce Second-Quarter 2024 Results Aug. 7 • PR Newswire (US) • 07/16/2024 08:05:00 PM
- Nearly 1 in 4 sellers cut home prices as inventory grows • PR Newswire (US) • 07/16/2024 12:00:00 PM
- Rents are growing fastest in unexpected places, led by Hartford and Cleveland • PR Newswire (US) • 07/10/2024 12:00:00 PM
- To afford a monthly mortgage payment, middle-class Americans need to put more than $127,000 down • PR Newswire (US) • 06/20/2024 12:00:00 PM
- The U.S. is now short 4.5 million homes as the housing deficit grows • PR Newswire (US) • 06/18/2024 12:03:00 PM
- Homeowners list while buyers hang back, pushing inventory higher • PR Newswire (US) • 06/12/2024 12:00:00 PM
- Phoenix is named Zillow's best market for the class of 2024 • PR Newswire (US) • 05/30/2024 12:05:00 PM
- Black homeownership rate rises, but hasn't returned to 2004 level • PR Newswire (US) • 05/29/2024 12:00:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM