The real estate market regularly goes through ups and downs. Still, today comes big news for a startup in the space that has built a platform that it believes can help all players in it — buyers, sellers, and those who help with the buying and selling — no matter what stage of the cycle we happen to be.
Compass — a company that has built a three-sided marketplace for the industry, along with a broad set of algorithms to help make it works — has raised a $370 million round of funding. The money that it plans to use to continue expanding geographically (within existing markets in the U.S. such as New York, Connecticut, Philadelphia, Washington, Atlanta, SF and LA, and other areas), as well as for more tech and product development. Sources tell me that it’s also now eyeing up an IPO, likely sometime in the next 24 months.
“From day one we knew, when we had just a small amount of people at the company, we had an obvious focus,” co-founder and chairman Ori Allon said in an interview. “We wanted to bring more tech and data and transparency to real estate, and I think that paid off.”
Based out of New York, Compass earlier this year established an engineering hub in Seattle run by the former CTO of AI for Microsoft, Joseph Sirosh. It’s continuing to hire there and elsewhere (alongside also making acqui-hires for talent).
The Series G funding — which brings the total raised by Compass to $1.5 billion — is coming in at a $6.4 billion valuation, a massive uptick for the company compared to its $4.4 billion valuations less than a year ago. Part of the reason for that has been the company's enormous growth: in the last quarter, its revenues that's up 250% compared to Q2 2018. Read more