Google Capital is $50 million [£30 million] light after investing in real-estate marketplace Auction.com and it pushes the company’s valuation past the $1 billion [£600 million] mark in the process.
The new investment means that the company is now worth $1.2 billion [£720 million] and part of the deal sees a representative from Google Capital join the firm’s board with another taking up a board observer position at the company, according to Tech Crunch.
“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.”
Auction.com, which was founded back in 2008, works by connecting buyers and sellers of real estate, in the past being touted as the eBay of the property buying and selling game.
Since its launch, $26 billion [£15.5 billion] of property has been sold through the site and Auction.com will use its new investment to build on this number through product expansion, mobile development, and sales and marketing.
The site is different to its competitors due to the fact the transaction actually takes place online as opposed to connecting the buyer with the seller online before the remainder of the transaction takes place offline. Even though this is the case the financing options remain the same as the real world as it happens through a bank.
Auction.com covers a wide range of different housing types from luxury homes and office buildings to foreclosed homes and self-storage facilities, with president Jake Seid of the belief that other real estate marketplaces like Zillow and Trulia are complimentary to its service.
It makes its money by taking a five per cent cut of each transaction and ensures the legitimacy of the service by vetting sellers and buyers before any transaction is given the green light.