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Google Capital - $50 million into Real Estate

After its launch last week, Google Capitol, poured $50 million into Auction.com, a real estate marketplace.

The valuation of the company post-money is $1.2 billion, and a representative from Google Capital will join the company’s Board of Directors and another will take a board observer position. 

Auction.com connects buyers and seller of real estate, and since its inception they have sold $26 billion of property - what makes them different is that the real estate transaction actually happens online. Some have described Auction.com as “the eBay for real estate.” Financing still happens via a bank and just like eBay, the highest bidder wins.

Auction.com prides themselves on their broad selection of stock, from luxury homes, to office buildings, foreclosed homes or even self-storage facilities. Customers range from large financial institutions to individuals and brokers.

Launched in 2008, Auction.com only started expanding in Silicon Valley last year, with the company’s headquarters in Southern California. And while Auction.com has raised money from private equity, it hasn’t used much of its unvested capital and is profitable.

President of Auction.com, Jake Seid, explained in an interview that, “Trip Advisor is to Priceline as Zillow is to Auction.com.” He sees sites like Zillow as complementary.

With all transactions occurring online buyers and sellers are vetted by means of proof of funds and other necessary checks before a transaction is enabled. Auction.com takes a 5% cut of each transaction.

“Auction.com has quietly built one of the largest marketplaces on the web,” said David Lawee, Partner at Google Capital. “We think Auction.com can fundamentally change how real estate, and particularly commercial real estate, can be bought and sold, leveling the playing field for smaller investors.”

(via TechCrunch)


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  • Adriaan Grove - posted 07 Mar 2014 08:56 AM                                    

    Google trying a different approach to real estate by investing in an Auctions platform - this could have a big impact if it works out. Seeing that auctions.com is already successful, I would take serious note of this if I was a master franchisee

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