Compass has pocketed $100 million in a recent funding round that valued the brokerage startup at $1.8 billion. The company has raised a total of $325 million since it was founded in 2012.
Gramercy-based Compass plans to use the cash to continue beefing up its technology, specifically integrating more data on transactions, listings and clients into the CRM platform used by real estate agents. According to Housingwire.com, the number of agents using Compass has grown by 500 percent in the past two years, the company said in a press release.
Todd Chaffee, general partner at IVP, pointed out that agents have kept an eye on Compass.
“Compass has proven that its technologically advanced platform is incredibly attractive to the industry’s top agents. Their position at the intersection of technology and real estate gives them the unique opportunity to be the single-largest holder of real estate data, ushering in a new realm of possibilities for agents and clients alike.”
While Compass operates similarly to other online real estate listing sites like Zillow, Trulia, Realtor.com, and Redfin, it separates itself by focusing on broker listings. It also takes a portion of the sale when a transaction is conducted through its platform rather than generating revenue through ads.
The investment also is likely to fuel the company’s expansion to more cities including Austin, Texas; Chicago; Dallas; Philadelphia; and Seattle. Compass currently operates in metropolitan areas including New York, Los Angeles and San Francisco, as well as affluent communities such as the Hamptons and Montecito, Calif.
According to Compass founder and executive chairman Ori Allon, the company has big goals and believes it can achieve them.
“Compass is building the infrastructure, data and tools that will power the next generation of this industry, This new funding will allow us to double down on our development of transformative technology, while fueling continued expansion into all of the top real estate markets in the country. Our long-term vision is for Compass to be everywhere as the world’s largest real estate platform.”
Fidelity Investments was joined in the Series E round by Wellington Management Co. and Institutional Venture Partners, both of which had invested in an August 2016 funding round.