Real estate site Zillow.com announced a $25 million Series B round of financing led by investment fund PAR Capital Management, which joined previous investors Benchmark Capital and Technology Crossover Ventures (TCV).
Seattle-based Zillow launched its beta site in February 2006. It said it will use the $25 million funding to develop products that provide consumers free information and tools related to real estate. The site has a media business model, deriving revenues from advertising on the site.
"We and our investors are bullish on the online advertising model and its future prospects for growth, particularly within the real estate and financial services categories," said Spencer Rascoff, chief financial officer.
Zillow provides free valuations and other data on 67 million U.S. homes. Zillow has raised $57 million to date. It has 118 employees and growing technology and advertising sales teams.
"Strong early market response to Zillow has focused us on just how hungry consumers are for real estate tools and information online," said Rich Barton, Zillow cofounder and CEO. "As a result, we have stepped up our hiring and product development plans significantly, precipitating this fund raise."