Compass Scores $75 Million Investment

NEW YORK — Compass, a technology-driven real estate brokerage, has closed a new round of funding. The $75 million round, led by Wellington Management Company LLP, comes nearly one year after the company’s $60 million Series C financing in September 2015. To date, Compass has raised $210 million in capital.

The funding also includes new investments from existing investors including IVP, which led Compass’ last round, Thrive Capital, Founders Fund, and 406 Ventures.

“This funding will provide us with additional resources to accelerate our growth into new markets and inject transformative technology to improve the experience for consumers and agents,” said Ori Allon, Founder and Executive Chairman of Compass. “When it comes to technology, the real estate industry is fragmented and regional systems don’t talk to each other. There is no reason the real estate process shouldn’t be transparent, convenient, expedient, and intuitive. Compass is aiming to change that.”

Launched in New York in 2013, Compass has rapidly expanded throughout the country in the last 18 months to Washington DC, Miami, Boston, the Hamptons, Cambridge, Beverly Hills, Malibu, Pasadena, Santa Barbara, and Aspen. The firm plans to open in San Francisco this fall.

Compass now operates 24 offices nationwide and represents approximately $7 billion in annual sales. This year, REAL Trends/ The Wall Street Journal named Compass’ Leonard Steinberg Team the #1 top-producing agent team in the country.

In addition to unveiling its technology, Compass has achieved several milestones in the past year including:

  • A national new development division with a $3+ billion pipeline headquartered in New York and Los Angeles
  • Launching a global sports and entertainment division catering to the specific real estate needs of celebrities and professional athletes
  • Becoming the #4 largest brokerage in NYC, #1 in East Hampton, #3 in DC and #2 in Cambridge by sales volume
  • Transacting the 5th largest residential sale in USA history – a $110 million East Hampton estate on Lily Pond Lane

Compass was founded by Allon, who sold two previous companies to Google and Twitter, and business partner Robert Reffkin, a former White House Fellow and Chief of Staff to Goldman Sachs’ President & COO.