VC money flows into online real estate after Zillow and Trulia IPOs

vcfunding11It’s a strange thing that Seattle seems to be the epicenter of online real estate, home to big companies like Redfin, Zillow and Market Leader as well as up-and-comers like Estately, Findwell, ValueAppeal and Walk Score.

I’ve been covering this segment of the Internet economy for a number of years now, and I still can’t pinpoint the reason for it.

Nonetheless, the dollars are flowing in online real estate, strengthened in part by the strong performances of Zillow and Trulia on Wall Street (Both are up more than 100 percent so far this year).

And that enthusiasm appears to be flowing down to the little guys. New research from CB Insights indicates that $391 million in venture funding has been pumped into online real estate startups in the past year. That’s up 87 percent year-over-year.

But the startups in the Northwest aren’t necessarily following in the footsteps of the big guys. The report found that deal activity in the Northwest actually trails Texas in the past two years.