Redfin Goes On A $12M Spending Spree

July 18, 2007

Fresh from a successful round of meetings with VC’s over on Sand Hill Road, Redfin just announced closing a successful fund-raising round of $12M, led by none other than Draper Fisher Jurvetson.

The coverage of this event has been predictable: Techcruch claims that Redfin’s goal is to “completely remove real estate agents and brokers from at least half of a home sale” (in which case they would immediately go bankrupt, since in most states you can only claim compensation for representing somebody in a real estate transaction if you’re a licensed agent.) The Bloodhound notes that this brings investors’ stake in the company to around $40,000 per transaction, while the indefatigable Kris Berg compares Glenn Kelman to those infamous Internet scammers (”419′ers” being the technical term) promising untold riches.

While both Kris and I have met Glenn Kelman, we clearly have different opinions about him. Say what you will about Redfin’s disruptions of our staid industry, but I’m thinking their business model may just have fins — er, legs — and that we castigate them to our own potential future peril. Besides, even if he tries, Glenn Kelman doesn’t have nearly the right accent to be a true 419′er. I, on the other hand…(ask me at Inman.)

But we digress. From an inside source at Redfin, I hear the team is busy divvying up the spoils as we speak.

  1. Sick of their current digs, they’re about to make an offer — using Redfin direct — on this swank place.
  2. Media & PR person Cynthia Pang’s is changing her title to “Lady Pang, Public Relations Mogul” and buying these guys.
  3. Each Redfin’er is getting one of these. Oh, wait a minute — Redfin’s site doesn’t work with Safari. Scrap that idea.
  4. Glenn is pursuing his love of Mustangs by getting one of these.
  5. Newsflash: Offer on 1) above was rejected “out of hand” so now they’re hiring none other than the Grand Dame of Seattle real estate to represent them. Rumor has it she’s agreed to refund Redfin $25 of her commission.
  6. They’re making 1.3M DVD copies of this show and have asked these guys for their mailing list.

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Written by Kevin · Filed Under Glenn Kelman, Real estate, Redfin 

Comments

4 Responses to “Redfin Goes On A $12M Spending Spree”

  1. Chris Iverson on July 18th, 2007 3:31 pm

    I was wondering how long before you commented on Redfin’s latest windfall.
    Redfin is definitely a disruptive technology, and we are seeing various models of discount brokerage in other parts of the Bay Area. So far, Palo Alto, and the Realtors who serve her, seem to be resistant to the incursion of lower-cost, lower-service models.
    Time will tell, whether the Redfin model is the right one.

  2. The Feed Bag on July 18th, 2007 4:17 pm

    [...] Good Grief, everyone took two Redfin pills and called themselves in the morning. Though my favorite of the bunch was Jonathan Dalton who announced Dalton’s Arizona Homes Secures $8.25 in Capital - Expansion in the Works The shady one didn’t disclose where the $8.25 came from though. Required Reading. [...]

  3. There goes the neighborhood. A Redfin sign is on my street! | Rain City Guide | A Seattle Real Estate Blog... on July 21st, 2007 11:01 pm

    [...] in spending money from its venture capital masters this week. A lot of noise, speculation and jokes have been made in the old RE.net blogosphere about the old Redfiners this [...]

  4. Cynthia Pang on February 12th, 2008 3:27 pm

    Hi Kevin - Redfin now supports Safari!

    http://blog.redfin.com/blog/2008/01/a_safari_into_freakish_depth.html

    Enjoy!

    Cynthia
    Redfin

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