Every time you turn around, it seems there is yet another Internet real estate auction site popping up.

It occurs to me that perhaps the immense interest in such a venture is a direct result of Internet mania. Unable to come up with alternative Web-based real estate businesses, every tekkie geek with a real estate license wants to digitally sell their properties.

Just last week, i-Incubator.com, Inc. (OTC BB: INQU) announced its i-RealtyAuction.com Inc. property received its first round of venture financing from Global Realty Management Group, Inc., a residential and commercial property manager based in New York City.

The capital infusion was a cash and stock-for-stock transaction, terms of which were not disclosed.

i-RealtyAuction.com is expected to launch within 180 days. The site will provide nationwide residential and commercial real estate auctions. Management claims the site will incorporate technology to systematically eliminate unreasonable and bogus bids, which have plagued many auction Web sites.

i-RealtyAuction.com also announced appointed its first outside board member, Joseph Spitzer, who is chairman and CEO of Global Realty Management Group and founder and President of Allstate Realty Associates. Allstate Realty Associates, based in New York City, currently owns and manages 23 buildings with a combination of 2,100 rental cooperative units and three commercial buildings in excess of 430,000 square feet. Spitzer specializes in stabilizing distressed properties and tenant/landlord relationships.

“The infusion of capital will allow i-RealtyAuction.com to further develop its network so it can offer properties in all 50 states,” said Jamee Freeman, president of i-Incubator.com. “With the addition of Joe Spitzer on the board, the company will also have a keen real estate mind giving it direction and opening doors with property owners.”

What makes this deal particularly interesting is the infusion of venture capital. Like other recent deals, this investment defies one of the typical tenants of VC investing – the existence of barriers to entry. Venture capital firms usually desire a definitive barrier to entry that will protect its pet company from competitors, at least for a short period of time.

i-Incubator.com does have some characteristics that distinguish it from similar companies. It is an Internet “hired gun” company that seeks ripe Web markets, rather than being married to specific industry segments.

Similar in structure to other incubators, i-Incubator.com provides venture capital, management, technical expertise and marketing assistance to development stage companies.

Similar ventures the company has invested in include i-AutoAuction.com, Inc., i-AntiqueAuction.com, Inc., and i-RealtyAuction.com, Inc.

While a sound business strategy may exist here, the time to market is none too fortuitous. Without some kind of mind-bending technological advancement, this is just another also-ran company looking to ride the wave of Internet ventures.

Published: January 18, 2000

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Editor's Note: This article reflects the opinions of Lesley Hensell only and not necessarily the views of this or any other publication, organization or Website owner.

Lesley Hensell covers commercial real estate and financial issues for Realty Times. Based outside of Dallas, Lesley works with high-tech and real estate clients as an independent marketing and public relations consultant. She also writes for several publications, including the Dallas Morning News. E-mail Lesley at: lhensell@earthlink.net