The company announced today that Globespan Capital Partners has led a $14.8 million investment, with existing investors Madrona Venture Group, Vulcan Capital, Draper Fisher Jurvetson and Greylock Partners also participating. Total funding in the company now stands at $46 million.
Redfin said it has represented customers in the sale or purchase of more than $6 billion in homes, returning some $85 million to consumers. It operates in 18 markets, covering about 30 percent of the U.S. population. With the new funding, Redfin hopes to cover roughly 50 percent of the population.
The financing at Redfin follows the botched launch earlier this month of a service called Scouting Reports which was designed to give a scorecard on the performance of individual real estate agents. But CEO Glenn Kelman said they’re not giving up on taking big risks, with several new products in the pipeline.
Asked about an online mortgage service, Kelman told GeekWire that mortgages are on the roadmap but not first on the list.
“In Globespan, Redfin has found the perfect partner: an investor committed to customer service as well as technology, who understands from its partners’ Zipcar experience how to grow neighborhood by neighborhood,” said Kelman in a statement. “Not many venture investors appreciate the different ways in which online and retail businesses grow, and even fewer think about the long-term competitive advantage you can create when the two work together.”
As part of the financing, Globespan Managing Director Venky Ganesan is joining Redfin’s board.
Especially in the wake of Zillow’s public offering, Redfin had been discussed as a potential IPO candidate. That still could happen, but Kelman and crew took the venture capital path for now because it was a favorable time to raise more money.
It’s unclear what sort of valuation was placed on Redfin in the most recent round. Last month, Business Insider estimated that the online real estate company was valued at about $230 million. Kelman declined to comment on the valuation.
We interviewed Kelman this morning, and will have more of his comments shortly. “This gives us the latitude to take more chances, and I love doing that,” Kelman told GeekWire.