Google is entering real estate through Google Capital, its investment vehicle, which announced the placement of $50 million in Auction.com, the dynamically growing online real estate trading platform.
In 2013, according to Auction.com, more than $7 billion worth of residential and commercial real estate changed hands on its platform. These are investment moves that Google Capital is accustomed to. Specifically, it is interested in minority stakes in unlisted companies at an advanced stage of development.
In February, it invested in the online education platform Renaissance Learning, while investments in the online investment house Lending Club and the polling software company Survey Monkey had preceded it. An interesting fact has to do with the fact that Google itself formed the company Google Capital in 2013, but only revealed its existence in February. As reported by the Wall Street Journal, citing reliable sources, the parent company has committed $ 300 million to Google Capital for the current year. The former head of Google's corporate development team, David Lovi, has been appointed as its head. In addition, the Google giant has another investment vehicle, which is to operate in addition to Google Capital. It is called Google Ventures and operates in the form of innovative investment funds. Google Ventures selects companies in early stages of development and acquires minority shares.
The funds available in both investment arms of Google come from itself, without the involvement of external investors. Finally, regarding the choice of Auction.com for the current investment by Google Capital, it is a company that was founded in 2007. In 2008, private investment funds Stone Point Capital acquired a stake in it. In 2013, there was a discussion in the market and among investors about the intentions of the online real estate platform to be listed on the stock exchange.
The reason for this was Auction.com's hiring of high-tech veteran Bruce Felt, who took over as its chief financial officer.
Source: kathimerini.gr
