If it seems like it was only a month ago that Compass raised a whopping $100 million in funding, that’s because it has been a mere 29 days since the real estate startup pooled major funds from Fidelity, among others.
Now, Compass has struck gold for the second time in less than four weeks: on Thursday, it was announced that Japan’s SoftBank Vision Fund had invested a staggering $450 million in the company. In one swoop, this nearly doubles the company’s already impressive $1.8 billion valuation to $2.2 billion.
Over the years, SoftBank has built a reputation for funding future industry leaders such as Slack, Uber and WeWork. Though there are a wealth of other housing-related startups positioned similarly to Compass, SoftBank’s belief in the brand has the potential to propel it to the forefront of the market.
Despite several major fundings in a row, Compass hasn’t simply been hoarding funds. In fact, these major fundings are reflective of the company’s rampant growth in recent months and, frankly, since its inception in 2012. With this latest investment, Compass intends to expand its already robust network of cities and agents. In a statement to Business Insider, co-founder Ori Allon describes the company’s growth trajectory:
“With the support of 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.” Allon goes on to note how, earlier this month, Compass launched its Chicago branch with the help of Illinois’s top real estate agent.
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.
Founded by Allon and Robert Reffkin, Compass has built its brand by connecting individuals to high-end agents and properties in some of the United States’s most exclusive real estate markets. In New York City, for example, Compass’s lowest-priced listing is for a $20,000 a month one-bedroom apartment; their average Manhattan listing closes at over $1 million.
Compass’s exclusive approach is reflected in its streamlined, uncluttered design. Whereas many house-hunting websites and mobile apps can be difficult to navigate and filled with numerous outdated and spam listings, Compass combines algorithmic efficiency with a boutique mentality.
As for when the average non-millionaire can expect to find their next pad on Compass, Allon noted that a more fiscally inclusive marketplace is in the works for the company, but short-term goals will remain focused on building out current markets.
The company certainly has no need to change their strategy, as evidenced by their billions in revenue and handfuls of happy investors. Justin Wilson, a senior investment professional at SoftBank, expressed excitement for Compass’s future in a statement on the recent deal. He notes, “Compass is well-positioned for future growth in a sector that represents trillions in transaction volume.”
