“Anything we believe can keep the Realtor at the center of the transaction and also yield a very sizable return,” Garland said.īut Second Century has kept a relatively low profile among other real estate-focused funds like MetaProp, Fifth Wall, Camber Creek and Moderne Ventures.Ĭompetitors say that’s because it’s exclusively focused on residential real estate and tends to favor investments that can generate solid returns with less flash. With a median investment of $3.3 million, SCV has made 38 investments to date, showing a preference for seed- and early-stage companies, according to a dossier from research firm PitchBook. Since then, SCV has taken its returns and reinvested the money in other startups, said David Garland, a general partner at SCV since 2016. Second Century Ventures’ initial $20 million war chest came from the membership association in the form of a line of credit. This past May, for instance, the American Heart Association’s announcement of a $30 million VC fund sparked criticism from prominent cardiologists for that very reason. Such funds are extremely rare for trade organizations, according to analysts, largely because the investments could easily lead to conflicts of interest. “It’s safe to say NAR is one of the big dogs.”īut starting in 2008, NAR also began investing heavily in tech startups through its wholly owned subsidiary Second Century Ventures. “Not to be glib, but there are homeowners in every congressional district and the Realtors frequently work to inform and mobilize them, which gives the Realtors a powerful base across the country,” said Michael Beckel, policy analyst at the Washington, D.C.-based Issue One, a nonprofit that aims to reduce the influence of money in politics. Chamber of Commerce, which shelled out $43.7 million. During 2018’s first half, NAR spent $27.3 million on federal lobbying, second only to the U.S. This year has been no different on the lobbying front. And NAR’s licensing agreement remains in place.Īt his guitar-strumming introduction last year, Goldberg promised technology that could change the industry for the better. In 2014, News Corporation famously bought Move for $950 million, and it has since boldly gone after Zillow’s market share. While there are those who believe the fight for digital listings is over, Goldberg isn’t one of them. “With 1 million-plus Realtors and a great platform, should have beat Zillow.” “The story is that NAR stifled Move, and that’s why Zillow won,” said the CEO of a data startup, who spoke only on the condition of anonymity for fear of alienating NAR members. Today, Zillow has more than 175 million average monthly users, compared to Realtor’s 63 million. Instead, critics said, NAR handcuffed Realtor’s growth by limiting the kinds of searches and data available. In theory, could have gone head to head with Zillow if it had focused on consumers, insiders said. That misstep dates back to the 1990s, when NAR licensed the listings portal - which it controlled - to California-based Move Inc. Amid questions over what members are getting for their money, the association is still paying the price for one of its biggest blunders.
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