"We want to increase our investments in both products and growing out the ad sales organization. We didn't run out of money, we still have the majority of the money from the last round, but we do believe that we are going to need more capital before we get profitable."

Zillow's Rich Barton

"We didn't necessarily need the money right now. But we do believe that we are going to need additional capital before we get profitable and we have had lots of interest in investing in Zillow. I think that's because people are excited by the opportunity we are going after, which is very different from what other companies -- who I think you think of as competitive with us -- are going after. We are in a different business. We are a database of all homes that is turning into a very interesting home and home related marketing platform. It is not just people looking up what is for sale. Pretty much every other site -- in what you think of in the real estate category -- that is what they are doing. We are a pretty different animal."

"We are paddling into what I call a great big blue ocean.... We are so emotional about our homes and they are so financially important and we spend so much time and money on these things, that Zillow wants to be the prime resource or the go to place where people go to get questions answered and to share stories and to get smarter."

"We are kind of pioneering a new category here and we are filling a tremendous brand vacuum, is what we are attempting to do. In 18 months time, we have become – not a household brand – that is a stretch – but close. Real estate and home-related information and community is a gigantic category that is going to support a very valuable company in my opinion and that is the same opinion that lots of investors have that are putting money into us. I think it is a big opportunity When we sold Expedia it was sold at about a $10 billion valuation and I tell you personally, long-term I am more excited about the opportunity for Zillow than I was for Expedia. It is a bigger business."

"Look, I think long-term this thing has immense potential. Near-term – you know – it is silly to talk about the near-term I think. All I care about is the long-term."

"We hope not. This ought to give us enough resources and reserves to fuel us through profitability, but you know things change and it is a dynamic market. We certainly think there could be circumstances where we could raise more money and one day if we were to IPO, we would obviously be raising more money in an IPO."

"I think a lot of people look at startup companies and they think the IPO is the goal. That is not our goal. Our goal is to build a huge, meaningful brand for the long term here. An IPO may very well be a step along the way, mainly because we are more of a classic startup where everybody owns equity in the company and when compensation comes in the form – at least partly in the form of equity – that means we are all kind of pulling on the oars together to at some point have a liquid market for that security. It is not a goal in and of itself, but it certainly could be an important step along the way to creating a great long-term brand."

"As I said before, I hope that we are not going to have to raise anymore money. I am hoping that this is something that gets us to the break even point."

"It is really dynamic. This money gives ... us lots of strategic flexibility and by that I mean we can decide to invest big in something new or not invest in something new. It gives us the flexibility and what we do from an investment perspective obviously dictates when we are profitable. The other side of that is, is how revenue develops and we are very early days still. A year ago when we raised our last round, we had maybe two ad sales people and now we have 20 in five different cities. We have made lots of progress."

"I am really pleased. We have really just begun to focus on it in the last year and step one is build the team and we have hired an incredible guy to run the sales force – a guy named Greg Schwartz who has a history at Yahoo, Time Warner and DoubleClick and he has built an incredible sales force that is gaining great traction on the national account site. I am just as excited by the local advertising opportunity. We figure there are $60 to $70 billion spent in advertising to home owners on home related things in the country and most of those dollars are spent locally'. We have had over 6,000 advertisers for this local EZ Ads product which is this self-service product that Realtors or plumbers or mortgage brokers can use. It is going really well, we are not talking about specific numbers but I am very encouraged."

"We are not talking specifically about revenues, it's a luxury of being a private company that I can answer that question that way. I have intimate knowledge and experience with the joys and pains or running a public company and having to answer that question, but right now we are private."

"That is something else that we are not talking about publicly, but if you look at the site you can see that we have a nice stable of branded advertisers and especially if you look in Seattle, we are doing pretty well on the EZ Ad side and you will be able to see a lot of local EZ Ads as you shop around in Seattle. These are good advertisers, premium advertisers and you know there are not too many and there are not too few, generally speaking. We think we are doing pretty well."

"Right now, for sale is 208,000 and Make Me Move is 80,000. That is what is live on the site right now, so it is approaching 300,000 listings."

"Absolutely."

"We are doing it in a two pronged way. The first thing we did was enable any user as we have done right now to post a home for sale – be that person an agent or a homeowner'. It is all kind of user generated today. We have had lots of brokers coming and asking us if we could have a more automated way for the brokerages to put up lots of listings at a time and so we are working on a product that is a structured feed where a broker can feed us listings."

"If they wanted to, they could go through this structured feed program and feed all of their listings right to us and we will put them up. That is not live yet, but you will see that by the end of the year. Listings are a very important part of the process, but they are not what we do. They are not the sole thing that we do."

"They do, but 4.4 million people came to Zillow last month and most of them not to see what is for sale. People are already coming to Zillow. It is a matter of whether or not brokerages and agents want to get some free advertising to those people while they are there."

"We do. Obviously none of them are live yet because we have not released the product, but we are signing up brokerages very rapidly right now."

"We are not talking about the specifics yet."

"The growth we have had in the last year – my guess is that it is probably close to 80 percent people growth in the past year – we are not going to continue that pace of growth of people. We are going to grow modestly from here."

"We have a bigger expense base now because there are a lot more people. We are going to pay those people, and hire some more and pay them. That is the biggest use of the funds right there. And we love that we have the strategic flexibility to do that for a long time."

"No. It has been fairly continuous since we launched that we have had lots of people expressing interest with different levels of intensity in investing in Zillow. Once we decided that the interest level was high enough, we ought to think about raising some money, we ran a little process internally here to go and talk to several potential investors and so a little of both. But we are incredibly pleased. I don't know how familiar you are with Legg Mason but it is a very storied investor, especially from an investment in Internet companies and Internet media companies. And so we are really pleased to have Legg Mason involved."

"I don't want to get specific about that, but we had lots of interest in the financing and I will say that it was obviously an up round if that means anything to you. It was an increase in valuation from the last round, significantly. We are very pleased and I am flattered that the investors see the same immense opportunity that we see to pioneer this new category. There just wants to be a great big brand in this space here and we are very well positioned against it."

"I don't know what the hell Web 2.0 means really."

"That is completely anathema to me. It is completely anathema – this kind of 'get in on nothing and do a quick flip and sell out.' I hate that. That is ridiculous. People aren't trying to create long-term brands and long-term value. That is like house flippers. And by the way, you generally get out what you put in. We are not creating a feature here, we are creating a business for the long-term that is going to be a brand that my grand kids know. I am not clever enough or short-term thinking enough to do what these other guys are doing and for everyone of these little features that breaks out and is successful – and there have been a handful of them – there are 1,000 that die that no one talks about. That is not what we are about, you know. Big opportunities, command big investments. If by Web 2.0, that's what you mean than don't categorize us that way."

"It is a little different. We didn't raise big money until we had millions and millions of traffic... The distinction is that we are not creating a feature, we are creating a business. Without trying to sound grand, I think we are pioneering a new category."

"(Money) went from Kleiner Perkins' pocket to AOL's pocket via a startup."

"It is just a matter of what kind of investment is necessary to create what it is you have in mind. I think that we think is probably significantly bigger and longer term than the way most companies are thinking. I am a very patient guy and the team we have put together here has already built one of the biggest brands on the Web. It is in our bones. That is what we like to do. We are looking way out. We not looking short term and we are not looking to do something that somebody else has already done and just build a different mouse trap and put a different UI on a site that has been around for awhile. That is not what we are doing here."

"We said we were working on a mortgage product four months ago or whenever Lloyd said it. We continue to work on a mortgage product. We think that one of the things that this money raise allows us to do is to look more broadly and say, alright, where else can we bring Zillow like transparency and control and power to consumers in and around their homes. The mortgage industry as it is playing out very publicly right now, feels like an industry that could use a good dose of transparency and consumer empowerment."

"We are working on it. We don't have anything imminent. I wish we hadn't said anything four months ago, but we did and we are working on stuff'. I am not saying we are going to ship anything by the end of the year, but we are working on a logical Zillow-like project around financing."

I certainly think that the mortgage business is doing lower volumes so they are probably spending a bit less. Our advertisers come from a broad cross section of industries that all kind of surround the home – it is effectively an infinite amount of money there advertising these businesses. Not just real estate and mortgages and titles and these things, but insurance and telecommunications and home electronics and home improvement.

These businesses are gigantic and the amount of advertising dollars being spent on these businesses is huge. Even if there is somewhat of an overall contraction in the overall spending of those industries, I think there is an acceleration of those dollars moving from offline to online. Almost regardless of what happens, we see a – I don't know if I would call it a tidal wave – but certainly a tidal shift of dollars from offline expenditures to online expenditures and we are going to be the beneficiaries of that."

"Ultimately, we want to be kind of the virtual town square. And a good chunk of what people talk about when they talk about their homes in the town square, is what is on the market and what did that go for and who is doing a home improvement and why is that truck on the road and that kind of stuff. A lot of it is what contractor did you use and what was your experience like and where did you get furniture and should I paint my house yellow, pink or blue. That kind of stuff. All of those conversations and decisions that are being made offline, we are striving to bring that online and bring that into Zillow. We think that everyone can benefit from a more perfect marketplace for that information flow. That is what we are working on doing. It's grand. It's a grand plan and ... we see lots of little harbingers that it is working...."

"Very confident. Very confident. The volume of advertising dollars that are going after these people as they have these conversations around spending money, it is effectively infinite. It is so huge. It is the biggest advertising category."