Online home-valuation provider Zillow has received another $25 million in investor financing, making the company’s total amount of capital raised $57 million to date, the company announced today.
The second financing round was led by investment fund PAR Capital Management, which joined previous investors including Benchmark Capital and Technology Crossover Ventures.
Zillow, which launched its beta site in February 2006, said it plans to use the additional funding for product development. The company has 118 employees and says that it is rapidly growing its technology and advertising sales teams.
Last week, Zillow announced a partnership with Yahoo! that will put the company’s home valuations in front of Yahoo! Search and Yahoo! Real Estate users.
Zillow was started by a group of Internet veterans, including Expedia founder and former CEO Rich Barton and former Expedia Senior Vice President Lloyd Frink. The Seattle-based company has an advertising-based business model that features banner ads and a display of Google AdSense ads alongside its home-data results.
“Strong early-market response to Zillow has focused us on just how hungry consumers are for real estate tools and information online,” said Barton, Zillow’s CEO. “As a result, we have stepped up our hiring and product development plans significantly, precipitating this fund raise.”
