Dec 07, 2017, 07:45 ET
NEW YORK, Dec. 7, 2017 /PRNewswire/ -- Compass, a real estate technology company, today announced that the SoftBank Vision Fund has agreed to invest $450 million, making it the largest real estate technology investment in U.S. history. 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 is 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 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.
Compass is a real estate technology company with a powerful end-to-end platform that supports the entire buying and selling workflow. We deliver an incomparable experience to both agents and their clients all in service of the Compass mission: to help everyone find their place in the world. Founded in 2012 by Ori Allon and Robert Reffkin, Compass operates in 11 regions across the United States: New York City, Los Angeles, Chicago, San Francisco, Boston, Washington, D.C., Miami, Orange County, The Hamptons, Santa Barbara and Montecito, and Aspen. Learn more and find your place at www.compass.com and compass.com/careers.
Julie Binder / Emily Sackett
SoftBank Vision Fund
Sard Verbinnen & Co
Emily Claffey / Benjamin Spicehandler / Hannah Dunning
+1 212-687-8080 / +1 415-618-8750
Share this article