Industry News

Redfin snags another $12 million in funding

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Redfin, the Seattle-based online real estate brokerage that's shaken up the industry by offering deep commission discounts to consumers, has secured another $12 million in venture capital funding and announced expansion in the East Coast. The brokerage company has raised $20.8 million to date. The third round of financing was led by Draper Fisher Jurvetson, and included Madrona Venture Group, Vulcan Capital, BEV Capital and The Hillman Co. Redfin says it plans to use the funding to continue its national expansion and to invest in its Web site. The company intends to open in Chicago later this year. Redfin rebates a portion of its commission back to home buyers in exchange for buyers doing most of the research themselves, and on the sell-side offers to list homes for a flat rate. The company claims to have saved home buyers nearly $6 million in commissions since its last round of financing in May 2006. Critics within the industry say that this type of business model in which consumers d...