In late July, Seattle, WA-based real estate tech firm Redfin (NASDAQ:RDFN) went public after an initial public offering that exceeded expectations, reaching $15 per share and a total valuation of $138.5 million. The company offers a tech platform for real estate transactions available through its website and mobile app and relies on salaried employees instead of commission-based real estate agents. Between 2015 and 2016, revenues have surged by 43 percent from $187.3 million up to $267.2 million in 2016.
However, Redfin’s successful IPO comes under the shadow of a potential patent suit the company might face in the months to come. An amended Form S-1 filed by Redfin with the U.S. Securities and Exchange Commission (SEC) notes that on July 24th the company received a letter from counsel representing David Eraker, a co-founder of Redfin as well as a former CEO of the company.
“The letter asserts a variety of claims against us, Paul Goodrich, a director, and Madrona Venture Group, an investor, related to events…