Compass, a New York-based real estate technology company, has announced that it will receive a $450 million investment from Japan’s SoftBank, calling it the “largest real estate technology investment in US history”.
The new investment, coming from SoftBank’s $100 billion Vision Fund, will take the total amount raised by the company to $775 million, and its post-money valuation to $2.2 billion. Compass’ other investors include Goldman Sachs, soon-to-leave American Express CEO Ken Chenault, Salesforce CEO Marc Benioff, Institutional Venture Partners, and large property developer LeFrak.
The company, which raised $100 million from Fidelity last month, said it will use the new funds to expand into all major cities in the US — it currently operates in 11 cities including New York City, Los Angeles, Chicago, San Francisco, Boston, Washington DC, Miami, Orange County, The Hamptons, Santa Barbara and Montecito, and Aspen — while boosting its own investment in technology.
Founded in 2012 by Ori Allon and Robert Reffkin, Compass provides a two-sided platform for real estate agents and home buyers that supports the “entire” real estate buying and selling workflow.
“Real estate is a huge asset class, but the sector has been relatively untouched by technology and remains inefficient and fragmented,” Justin Wilson, a senior investment professional at the SoftBank Vision Fund, said in a statement.
“Compass is building a differentiated, end-to-end tech platform that aggregates across diverse data streams to support agents and home buyers through the entire…