According to Red Herring, E-Loan (Palo Alto, CA) expects to raise an additional $25 million in capital this fall to build out its transaction fulfillment and customer service center. The 115-person company is profitable on revenues estimated at $9 million in 1998 (which would equal 4,000 loans if they booked $2,250 in fees per loan), up nine-fold from $1 million in 1997. E-Loan is planning an IPO in Q2 1999.

The company saturated the Seattle market earlier this fall with advertising; we’ve watched TV spots during the 11 p.m. news; heard radio ads during drive time; read small ads in the Seattle Times Sunday Real Estate section; and were shocked to see a full page ad in The Wall Street Journal. Seattle must be a test market, given the company’s entire promotion budget is $2.5 million, according to Red Herring.

Contact: Christian Larson is CEO, (650) 617-0400. Previous articles: OBR 5/98; 10/97.