$400 Million Raised by COMPASS Real Estate

— Story as seen on Techcrunch by Ingrid Lunden

Compass, the New York startup that has built a tech-first platform to take on the antiquated market of real estate, is building up its own house today. To double down on domestic growth, build out its tech, and to finally open up for business outside the US, the company has raised another $400 million of funding.

Jointly led by SoftBank’s Vision Fund and the Qatar Investment Authority, this Series F — likely to be the last before it goes public — now values Compass at a whopping $4.4 billion.

(Other investors in this round include Wellington, IVP and Fidelity, with the total raised by Compass now at $1.2 billion to date.)

Compass has been on nothing less than a funding roll. (Part of a wider one for the real estate startup market: today SoftBank also led a $400 million round into Opendoor, and last week Zumper raised $46 million.)

Compass’s money comes on the heels of the startup raising $450 million less than a year ago at a $2.2 billion valuation, also led by the Vision Fund, and picking up $100 million just before that, totaling $900 million for this year.

These sums underscore just how far and fast the company has leaped since first being founded as Urban Compass in 2012. Indeed, while the real estate market has had its ups and downs, you could argue that Compass has been witnessing a boom of its own.

The company cleared $34 billion in sales in 2018 ($14.8 billion in 2017) and is on track to make $1 billion in revenues. It already claims to be the biggest independent brokerage in California. This, it should be said, was partly due to inorganic growth: it acquired Pacific Union International in August, and although Compass doesn’t rule out more M&A, this will never replace organic growth, according to Ori Allon, the co-founder (with CEO Robert Reffkin) and executive chairman of the startup.

Allon would not say whether Compass is currently profitable, but it sounds like an intentional no. “We are in a strong financial position and continue to heavily invest in growth,” Allon — a search engineer himself who previously sold companies to Google and Twitter — said in an interview.

Compass at its most basic offers a clear and easy way for property owners to list, market and sell properties, as well as follow through on the many pieces of complex transactional data that occur before and after the deal is made. But it has also built its business in a quite traditional way, too: by adding people.

The company says it now has more than 7,000 agents on the ground, triple the number it had in 2017, and is on track with a strategy to control 20 percent of all residential property sales in the US’s top 20 markets. (In addition to big cities like New York, Washington, Boston and San Francisco, it’s been expanding into the next wave of markets, including San Diego, Dallas, Seattle, Philadelphia and Atlanta, and soon Austin, Nashville and Houston).

In Allon’s view, the tech and human elements are essentially two sides to the same coin.

“We are continuing to build an end-to-end technology platform that services agents and their clients through every step of the real estate journey,” Allon said. “This is why so many agents make the transition to Compass. Our vision is for Compass to be everywhere, and we are excited to expand internationally in 2019.”

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COMPASS, Malibu

Tony Mark and Russell Grether are thrilled to be founding members of the Compass Malibu office and actively work with the brokerage to improve the future of real estate. We are excited about the growth of the company the look forward to continual progress!

In the meantime, we’ll be doing what we do best: Helping everyone find their place in the world.

If you have any questions or would like to learn more, please contact

The Mark & Grether Group at 310.230.5771 or email us at russellandtony@compass.com