Google Capital, a growth equity fund launched by Google last month, was quick to dole out a $50 million investment in up-and-coming foreclosure marketplace website Auction.com.
A Google executive will join the board of directors at Auction.com,. The stake taken by the Google fund translates to a $1.2 billion valuation of the auction site. Roughly $26 billion in property sales have occurred on the California-based website since it launched in 2008. Auction.com receives a 5 percent commission from each deal.
The marketplace is in a similar league as real estate information giants Trulia and Zillow, the latter of which bought listings database StreetEasy for $50 million in August, as previously reported. Zillow, on behalf of StreetEasy, inked a 10-year lease for 13,300 square feet on the ninth floor at 130 Fifth Avenue last month, as The Real Deal reported. [TechCrunch] — Mark Maurer