Wed
Seeking an angel
Posted by Marlow Harris under Real Estate
[3] Comments
In a press release today, TheHomeBuyingCenter.com is seeking angel investors and venture capitalists for a new online real estate brokerage.
To make their case, they write that $50 million was invested in real estate related businesses on the internet by angel investors, private equity companies and venture capitalists and they cite 3 other web-based real estate firms who have received venture capital in the last few years, Zillow, Trulia, and Redfin.
However, none of those firms are profitable yet.
Probably not the best examples to give while trying to raise funds. Anyway, who wants to invest in other people’s misery? Building a business model whose success lies in our economy being in the toilet is not something I would think would garner a lot of support.
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Zillow has raised a staggering $87 million and their latest “feature” is a hot or not showing of real estate photos.
Gee, how do I get to invest in that?
Trulia has raised about $18 million and displays listiings and runs a sort of Jeopardy for Realtors -Trulia Voices
Redfin has raised about $20 million AND they were on, gasp, 60 minutes, that worth a few million, no?
Hey but they are web 2.0, the future of real estate marketing, twitterable, transparent, cutting edge, get plenty of blog mentions etc.
Take that to the bank…
Not sure how long it will take, but real estate will eventually turn. Investing in online companies can be a good thing.