Google Capital invests $50 million in Auction.com
Google Capital, a growth equity fund backed by Google Inc (NASDAQ:GOOG), is investing $50 million into Auction.com, a real estate marketplace service. Auction.com now has a valuation of $1.2 billion. Two representatives of Google Capital will join Auction.com: one as a director on the board and another as a board observer. Auction.com connects real estate buyers and sellers. Auction.com has sold $26 billion worth of property since being founded.
Auction.com is sometimes referred to as “eBay for real estate.” The highest bidder wins the auctions. Auction.com contains a wide variety of real estate from foreclosed homes to multi-story office buildings. Auction.com handles tens of thousands of transactions across commercial and residential real estate for customers. Auction.com launched in 2008 and started to expand in Silicon Valley last year from their headquarters in southern California.
“Auction.com has quietly built one of the largest marketplaces on the web,” stated David Lawee, a 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.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry