Auction.com, an online marketplace where users can sell and buy real estate in an auction setting, has raised a significant sum of capital for its future growth.
Google Capital and Auction.com announced on Wednesday that the search company's growth-equity firm has dropped $50 million in the real estate marketplace on a valuation of $1.2 billion. A Google Capital representative will also join Auction.com's board.
Irvine, Calif.-based Auction.com handles "tens of thousands of transactions" in both commercial and residential real estate every year. The company's online platform launched in 2008, and CEO Jeff Frieden said over $7 billion of commercial and residential real estate was traded on the site in 2013. Starwood Capital Group, Starwood Property Trust, and Stone Point Capital have also invested in Auction.com.
"Auction.com has quietly built one of the largest marketplaces on the web," said David Lawee, a partner at Google Capital, in a statement. "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."
Google Capital was founded just last year but has already been flexing its financial muscle. The company has invested in Survey Monkey, Lending Club, and most recently, Renaissance Learning.