Zillow raises $30 million in VC funding

Zillow said Thursday that it raised $30 million in venture funding.

The round was led by Legg Mason Capital Management. Zillow, which has been building out its platform, said the money will go toward expanding staff and accelerating features and products.

Zillow said in a statement that it has raised $87 million in funding to date. All of Zillow's prior investors--Benchmark Capital, Technology Crossover Ventures and PAR Capital--participated in this round with Legg Mason (see Techmeme discussion).

What's notable about Zillow's funding is that the real estate market stinks. But in a downturn is when companies can make a move to become a leader. It appears that's what Zillow's investors are thinking. Zillow definitely has some momentum with more than one million homeowners and agents "claiming" homes on Zillow, user-generated listing and a growing advertising business.