So Redfin’s roadtrip paid off big time.

They just closed a $12 Million series C round led by Draper Fisher Jurvetson, giving them close to $20 Million is total financing to date. Techcrunch reports the company is gearing up for war. Marlow Harris at 360Digest and Greg at BloodhoundBlog, on the other hand, posit the investment is needed just to keep the company afloat.

I’m going to cut down the middle and say there’s no doubt that Redfin has huge overhead costs (how many other small brokers out there shoulder large developer teams and have to pay Seattle engineer salaries?) that are frightening to its longterm prospects. But this $12 million has also given them the warchest they needed to open in the Washington, D.C. market.

Redfin is trying a “go big or go home” strategy, and are still in their expansion phase. They need to scale their business quickly in order to see any return on the investment and the VCs are eagerly fueling this with bucket loads of cash. When they launch in Chicago (soon) though, they’ll be live in seven of the biggest real estate markets in the US and then I suspect the pressure will shift from expansion to proving the business model. Then, they’ll be no more excuses.

Until that point however, the company can show continue to show momentum by launching new offices under great fanfare. But at some time the business will have to mature and real profits are going to have to be shown — the end game is getting closer and closer. The end result, at least in my mind, is still not clear yet.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription