Google Capital invests $50 million in real estate platform, Auction.com
The old saying about real estate is that the three most important things are location, location and location. In other words, if you buy a beautiful home next to a garbage dump or angry neighbors, you will be miserable. When it comes time to sell, you will be hindered by the horrible surroundings.
Well, it seems that Auction.com was in the right location at the right time today, as Google Capital invests $50 million dollars in the real estate website. If you aren't familiar, that is a Google-backed growth equity fund.
"Google is the world's greatest Internet company, and we're thrilled to have the opportunity to work closely with them. This will give us an opportunity to tap into their deep 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", says Jeff Frieden, CEO and Co-Founder of Auction.com.
David Lawee, Partner at Google Capital explains, "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".
It is important to remember that Google is only investing -- they are not acquiring or taking over the website. However, for a company as smart and forward-thinking as Google to invest in a company, it must expect great things. In other words, the spotlight is now on Auction.com to perform.
Was this a smart investment? Tell me in the comments.
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