Israeli-Founded US Property Tech Startup Compass Raises $400M

Compass, the New York-based property tech firm founded in 2012 by Israeli entrepreneur Ori Allon, announced on Thursday that it raised $400 million in a Series F financing round led by the Softbank Vision Fund and Qatar Investment Authority (QIA), with participation from Wellington, IVP and Fidelity.

This investment will bring the total capital raised by the company in six years to nearly $1.2 billion. In December 2017, Compass raised $250 from Softbank.

Compass said the capital “will enable the company to expand internationally, continue to fuel its growth across the US, and increase its investment in technology to further empower Compass agents and their clients.”

Compass has been reshaping the real estate market in the US with its algorithm-based platform that aims to improve the home-buying process, pairing it with the expertise of top agents, which the company is said to be luring with significant signing bonuses, NoCamels reported in January.

“Real estate is the largest asset class in the world, and we are excited to bring Compass technology to international markets,” said Allon said in a statement. “Our incredible track record of growth in the US validates our vision and sets us up for the global stage. The support of our investors will strengthen the Compass mission to help everyone find their place in the world by advancing our national and global expansion and continue building our agent productivity platform through technology and innovation.”

Compass says it has tripled its agent population to over 7,000 in 2018, and launched operations in key markets including San Diego, Dallas, Seattle, Philadelphia and Atlanta, with plans for Austin, Nashville and Houston before the end of the year. Last month, Compass bought Paragon Real Estate Group to form San Francisco’s largest residential brokerage firm.

Compass says it is on track to hit over $34 billion in sales volume this year.