Redfin Corporation (NASDAQ: RDFN) was founded in Washington in October 2002 under the name Appliance Computing Inc., then re-registered as a Delaware company in February 2005 and changed to its current name in May 2006 , Headquartered in Seattle, Washington, USA, with 2,993 full-time employees (12/31/2018), is a technical residential real estate brokerage company.
Redfin Corporation (RDFN):
Redfin is a residential real estate business company that provides network-based real estate database and brokerage services. Redfin launched home buying and home selling in 2006.
When working with home buyers, Redfin refunds part of the commission, thereby offering discounts and saving commissions. In Missouri, Oregon and Tennessee, state law does not allow companies to provide rebates to home buyers. Redfin charges a 1.5% listing fee to the house seller, which is lower than the traditional 3% fee.
Redfin directly hires its agents, pays them salaries, separates it from the salary structure of traditional real estate agents, and links bonuses to customer satisfaction. After each transaction, regardless of success or failure, the customer must review the company’s salesperson (agent), and all comments will be posted on the website under the agent’s online profile.
The efficiency of Redfin can save company and customer costs. The company’s home buyers (customers) in 2016 saved an average of approximately US$3,500 per transaction. While Redfin charges most sellers with a commission of 1% to 1.5%, traditional brokers usually charge a commission of 2.5% to 3%.
Redfin Corporation (RDFN) History:
- In 2002, David Eraker, Michael Dougherty, and David Selinger founded the company;
- In the A round of financing, Redfin Corporation received $1 million from Madrona Venture Group;
- In May 2006, Redfin Corporation received USD 8 million in Series B financing from Vulcan Inc. ( the investment arm of Microsoft co-founder Paul Allen);
- In July 2007, Redfin Corporation received US$12 million in Series C financing from Greylock and Draper Fisher Jurvetson;
- In 2012, Redfin Corporation launched the automatic agent rating system (automatic agent rating system);
- In October 2012, Redfin Corporation won The DIGITAL 100: World’s Most Valuable Private Tech Companies award from Business Insider;
- Redfin Corporation has gone through several rounds of financing since then. The most recent time it raised US$50 million in a mezzanine led by T. Rowe Price and Tiger Global, bringing its total financing to slightly more than US$96 million;
- In December 2014, Redfin Corporation received another US$70.9 million in financing, led by Wellington Management Co. and Glynn Capital Management, followed by Brothers Brook, Annox Capital Management, Tiger Global Management, T. Rowe Price and others;
- On June 30, 2017, Redfin Corporation submitted an IPO prospectus to the SEC, and plans to land on Nasdaq on 7/28/2017.
Redfin Corporation (RDFN) investment:
Redfin Corporation (NASDAQ: RDFN) submitted its IPO prospectus on 6/30/2017, and plans to IPO on NASDAQ on 7/28/2017. The issue price is US$12.00-14.00, and 9.231 million shares are issued, raising US$149 million. Stock code: RDFN.