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Lead Investor PAR Capital Management Plus Previous Venture Investors Participate in Second-Round Funding
SEATTLE, July 25 — Zillow.com, the real estate Web site with free, instant values on nearly 67 million U.S. homes, today announced a $25 million Series B round of financing. The round was led by investment fund PAR Capital Management, which joined previous investors including Benchmark Capital and Technology Crossover Ventures (TCV). Zillow has raised $57 million to date.
Zillow, which launched its beta site in February 2006, will use the additional funding for development of further products that empower consumers with free information and tools to become smarter about real estate. Zillow currently has 118 employees and is rapidly growing its technology and advertising sales teams.
“Strong early market response to Zillow has focused us on just how hungry consumers are for real estate tools and information online,” said Rich Barton, Zillow co-founder and CEO. “As a result, we have stepped up our hiring and product development plans significantly, precipitating this fund raise. We are pleased to welcome PAR Capital, who we know well from previous business lives, alongside our venture capital investors, TCV and Benchmark Capital.”
Zillow has a media business model, deriving revenues from advertising on the site. “We and our investors are bullish on the online advertising model and its future prospects for growth, particularly within the real estate and financial services categories,” added Spencer Rascoff, chief financial officer at Zillow. “Zillow is in a good position to capitalize on the rapidly growing online advertising market, which is expected to be a nearly $18 billion industry next year.”
About PAR Capital Management
PAR Capital, based in Boston with over $1.5 billion in assets under management, focuses on investments in various consumer related industries including travel and online media. Portfolio companies include USAirways and Google.
About Benchmark Capital
Benchmark Capital was founded in 1995 to help talented entrepreneurs build great technology companies. Benchmark’s partners take a team-oriented, labor- intensive approach to venture investing to deliver a superior level of service to the firm’s portfolio companies. Benchmark’s portfolio includes franchise companies such as eBay, Juniper Networks and Red Hat. Managing more than $3 billion in committed venture capital, Benchmark focuses on investing in entrepreneurs with original ideas. For more information on Benchmark, visit its web site at http://www.benchmark.com/ .
Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to technology companies, providing funds to expansion, late-stage private, and public companies. TCV employs a crossover investment model, which combines venture capital with public market investing and enables TCV to continue to invest in its portfolio companies at the IPO and beyond. TCV manages over $4.7 billion in assets and has invested in over 150 companies, achieving 39 IPOs and 29 other strategic sales or mergers. Leading investments include Actuate, Alteon Websystems, Altiris, CNET, Expedia, Netflix, RealNetworks, Redback Networks, Solect Technology, Webroot and Xylan. TCV has ten partners and is headquartered in Palo Alto, Calif. For more information about TCV, visit http://www.tcv.com/ .
Zillow.com launched its beta service in February 2006, with the goal of empowering consumers with tools and information to transform how they buy and sell homes. The first step is providing valuations and data on 67 million U.S. homes — and growing. Zillow was started by a group of Internet veterans, including Expedia founder and former CEO Rich Barton and former Expedia senior vice president Lloyd Frink. Located in Seattle, Zillow has raised a total of $57 million in funding including the latest Series B investments.