Google Capital has bought 4% stake in the online real estate market place, Auction.com
Google’s new investment arm, Google Capital has acquired a minority stake in US-based online real estate auction firm, Auction.com, investing $50m.
Google Capital bought a 4% stake in the online real estate market place valuing the company at $1.2bn.
As part of the deal, Google Capital will get a seat in the seven member board of Auction.com.
Founded in 2008, the company has sold nearly $20bn in assets since 2010, including $7bn in real estate assets online in 2013.
The online real estate market place uses countdown clock as used by eBay to broker real estate deals.
Auction.com CEO and co-founder Jeff Frieden said the deal will give the company an opportunity to tap into Google’s expertise in digital marketing and mobile, as well as in building world-class products.
"Over $7 billion of commercial and residential real estate traded through our online marketplace in 2013, and we believe that having Google Capital’s support will help us expand our industry leadership, and carve out a bigger share of the global real estate market," Frieden said.
Google Capital partner David Lawee said Auction.com has quietly built one of the largest marketplaces on the web.
"We think Auction.com can fundamentally change how real estate, and particularly commercial real estate, can be bought and sold, leveling the playing field for smaller investors," Lawee added.