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ActiveRain, the Bellevue online real estate community that boasts more than 65,000 real estate professionals as members, didn't have to look far for its first round of funding. HouseValues, the publicly-traded Kirkland real estate company, has led a $2.75 million investment in the company.
ActiveRain co-founder Jonathan Washburn writes on the company's blog that the site will remain free and under the control of the founders. And he notes why the company chose to partner with HouseValues, saying that they understand the startup's culture.
"Despite the many hands held out to us over the past few months, the right one had to gain a firm grip on our trust. HouseValues did that – above all others," he writes.
Meanwhile, co-founder Matt Heaton explains the need for outside financing.
We had grand visions for what we wanted to do with ActiveRain but all our resources went to simply maintaining what we had. There was no way we could keep things running and grow at the same time so we needed outside funding, which of course took even more of our time. I don't know how many of you have gone through the process of raising funds, but it is a long, hard slog even if you are a "hot" company like ActiveRain.
More from the Future of Real Estate Marketing blog, which notes that the startup has been bootstrapped for the past few years but now has a little more cash to fend off attacks from Trulia and Zillow.com.
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Posted by unregistered user at 1/21/08 12:52 p.m.
John, thanks for the writeup, we're very excited to get the financing finally in the door and have some pretty big plans for it.
http://activerain.com/blogsview/347020/The-long-hard-road