Compass continues to raise capital, having just landed its biggest funding round yet from the Japanese telecommunications giant SoftBank Group.
Less than a month after the New York-based real estate technology startup received $100 million in series E funding from Fidelity Investments, Tokyo-based SoftBank infused the company with $450 million, plus another $50 million in secondary deals. This investment will bring the total capital raised to $775 million. Compass will use the capital to expand to every major U.S. city and increase its investment in technology to further empower Compass agents and their clients.
Compass say it's building the first modern real estate platform, which reduces the friction and frustration 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. The company's online platform, which rivals more established players like Zillow and Trulia, is meant for both real estate agents and buyers, and powers the entire transaction process from the start of the home search to finalizing all of the contracts and documentation.
"The combination of technology and our partnership with top real estate agents who do outsized transaction volume will enable us to build the world's largest real estate technology platform," said Ori Allon, Founder and Executive Chairman of Compass. "With the support of the SoftBank Vision Fund, we will be able to move quickly to execute our 'Compass Everywhere' vision, partnering with top agents and their clients in every major U.S. city. Just last week, we launched in Chicago with the number one agent team in the State of Illinois, and we are continuing to gain momentum with top agents everywhere."
"Real estate is a huge asset class, but the sector has been relatively untouched by technology and remains inefficient and fragmented," said Justin Wilson, a senior investment professional at the SoftBank Vision Fund. "Compass is building a differentiated, end-to-end tech platform that aggregates across diverse data streams to support agents and homebuyers through the entire process, well beyond the initial home search. With disruptive technology and unique data advantages, Compass is well-positioned for future growth in a sector that represents trillions in transaction volume."
Over the last 24 months, Compass grew its agent population by 500 percent. Top agents are attracted to Compass because of their agent-centric technology, which helps drive a 25 percent increase in commissions income in an agent's first year with the company. The clients of Compass agents benefit from the technology by selling their homes more quickly and at higher prices. Buyers benefit from a more efficient process. With this capital infusion, Compass will bring these benefits to more top agents and their clients in cities across the U.S.