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Redfin raises $12 million in New VC, eyes D.C., Chicago and Sacramento

John Cook:

Redfin has raised an additional $12 million in venture funding, money that the Seattle discount real estate broker will use to enhance its Web site and expand into new markets.

Redfin Chief Executive Glenn Kelman is pinpointing other markets in an effort to reach profitability, adding that the 75-person company should break even once it has established itself in 10 major cities. Redfin is already profitable in Seattle, with San Francisco, Boston and southern California also reaching the milestone during select months. Kelman estimates that it will take the company about six months to reach profitability in each new market.

"We don't think we are going to raise another round, unless we screw up," said Kelman. "This is the amount of money that we felt we needed to safely get to profitability without having to go back to the bank."

It will be interesting to see if the math ever works - financially; another $12M raises the "successful exit" bar quite a bit (they've raised a total of $20M in VC funds).

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