Funding Real Estate

Real Estate Company Compass Raises $400 Million

NEW YORKCompass, a real estate technology company, has scored a $400 million Series F financing round led by the Softbank Vision Fund and Qatar Investment Authority (QIA), with participation from Wellington, IVP and Fidelity. This investment will bring the total capital raised to nearly $1.2 billion.

Compass plans to use the capital to expand internationally, continue to fuel its growth across the U.S, and increase its investment in technology to further empower Compass agents and their clients.

Since its founding in 2012, Compass has been committed to revolutionizing the real estate industry, reducing the friction associated with selling, buying, or renting a property by providing real estate agents with a set of powerful tools to increase efficiency and sales volume.

Compass operates in major markets across the United States including: New York, Los Angeles, Orange County, Chicago, San Francisco, Seattle, Philadelphia, San Diego, Washington, D.C., Dallas, Atlanta, Boston, Miami, Westchester, Santa Barbara and Montecito, The Hamptons and  Aspen.

In 2018 alone, Compass more than tripled their agent population to over 7000 to-date, and launched in key major markets including San Diego, Dallas, Seattle, Philadelphia and Atlanta, with plans to launch in Austin, Nashville and Houston before the end of the year. Compass is on track to hit over $34 billion in sales volume this year, more than doubling their 2017 sales volume of $14.8 billion. Last month, Compass became the #1 independent brokerage in California after announcing their acquisition of Pacific Union International.

The $400M Series F round positions Compass to:

  • Accelerate its 2020 vision of gaining 20% market share in the top 20 cities in the U.S. by 2020
  • Double down on technology: Compass plans to continue launching new products and initiatives, creating one platform for the real estate industry
  • Expand internationally

“Real estate is the largest asset class in the world, and we are excited to bring Compass technology to international markets,” said Ori Allon, Founder and Executive Chairman of Compass. “Our incredible track record of growth in the U.S. validates our vision and sets us up for the global stage. The support of our investors will strengthen the Compass mission to help everyone find their place in the world by advancing our national and global expansion and continue building our agent productivity platform through technology and innovation.”

“Compass’s continued growth is being driven by their commitment to empowering agents with best-in-class technology that helps them expand their business and better serve consumers,” said Justin Wilson, SoftBank Investment Adviser’s board representative. “We’re excited to continue to support Compass as they further invest in their data and technology capabilities to create a next generation platform for home transactions and ownership.”