- Rapidly growing real estate tech company Compass recently announced it raised $370 million in funding at a $6.4 billion valuation
Compass (formerly known as Urban Compass) — a rapidly growing real estate tech company founded by CEO Robert Reffkin, Ugo Di Girolamo, and executive chairman Ori Allon — recently announced it raised $370 million in Series G funding at a $6.4 billion valuation, according to The Wall Street Journal. Compass’ valuation has more than tripled in under two years. Including this round of funding, Compass has raised more than $1.5 billion in total funding since launching in 2012.
The investors in this round include Dragoneer Investment Group, SoftBank Vision Fund, Canada Pension Plan Investment Board, and the Qatar Investment Authority. And to accelerate growth, Compass acquired the fifth-largest brokerage in the U.S. called Pacific Union last year.
It’s worth mentioning that this round of funding was not Compass’ largest. Last year, Compass raised $400 million in a single round — which was led by the SoftBank Vision Fund. And SoftBank had invested $450 million in Compass the previous year also.
With this round of funding, Compass is planning to invest in its platform software and to scale operations including “continued expansion of its East and West coast product & engineering hubs.” Plus the company is also going to invest more in cloud, mobile and AI. Compass’ end-to-end platform that simplifies the process of buying and selling homes. And it also has a concierge program that provides customers with money to do home improvements like staging and painting.
According to Crunchbase, Compass’ revenue also surged 250% in the second quarter compared to Q2 2018. And now Compass employs around 2,200 people — up from 1,000 people a year ago. Now Compass has over 300 offices around the country and it has a team of more than 13,000 agents that work as independent contractors.
Since Compass’ last funding round, the company also acquired CRM company Contactually along with luxury brokerage Alain Pinel Realtors and Stribling & Associates. And Compass also hired Joseph Sirosh (former Microsoft CVP and CTO of AI) as the chief technology officer in December 2018. Plus the company also opened its first West Coast-based product and engineering campus in Seattle.
