Compass operates a three-sided marketplace and a suite of algorithms and products (including Compass Concierge) to assist buyers, sellers and agents with pricing, timing, staging and transaction management. It works with about 13,000 agents and has expanded from high-end residential into commercial and a wider range of price brackets. Compass has made acquisitions such as CRM platform Contactually and established an engineering hub in Seattle led by Joseph Sirosh. The company is based in New York and was founded in 2012. Compass plans to use new funding to expand geographically within existing U.S. markets (New York, Connecticut, Philadelphia, Washington, Atlanta, San Francisco and Los Angeles) and to accelerate technology and product development. Its revenues grew 250% in the last quarter compared to Q2 2018, and the company has faced roughly 10 lawsuits from competitors like Zillow and Realogy. Leadership includes co-founders Ori Allon (chairman) and Robert Reffkin (CEO). Founded as Urban Compass in 2012, Compass combines software tools with a growing agent network to enable property listing, marketing, transaction management and post-close services. The company says it has more than 7,000 agents (triple its 2017 level) and claims to be the largest independent brokerage in California. Compass cleared $34 billion in sales in 2018 (up from $14.8 billion in 2017) and is on track to generate $1 billion in revenues. It has pursued inorganic growth—acquiring Pacific Union International in August—and continues expanding across major U.S. markets while planning international expansion in 2019. Leadership includes co-founder/executive chairman Ori Allon and CEO Robert Reffkin. The company is described as being in a strong financial position while continuing to heavily invest in growth; profitability was not disclosed. Compass builds search and listings technology and tools for real-estate agents, pairing people with places and surfacing neighborhood data. The company is focused on agent-facing products and is moving into CRM to integrate client, listings, and transactions data. Compass has concentrated on the high end of the market and expanded its agent population 500% over the past 24 months. It says it is on track to complete 16,000 transactions and over $14 billion in sales this year, generating over $350 million in annual revenue. Compass plans to use new funding to expand sales and rental listings to every major U.S. city and to build its CRM product. Management emphasises aggressive geographic growth and hiring top agents while improving the firm’s technology stack. Compass offers integrated web and mobile products — including Compass Markets for real-time housing data and an agent-only app for marketing, valuation, and open-house workflows — alongside a proprietary suite of agent tools. The company represents approximately $7 billion in annual sales and operates 24 offices nationwide. Founded in New York in 2013, Compass has rapidly expanded into markets including Washington DC, Miami, Boston, the Hamptons, Los Angeles-area markets, Aspen, and plans to open in San Francisco. In the past year it launched a national new development division with a $3+ billion pipeline and a global sports and entertainment division. Compass has raised $210 million in investor capital to date and touts top-producing agent teams and landmark transactions. Management says additional funding will accelerate geographic growth and further develop its technology offerings. Compass builds a big-data, algorithmic real estate platform that provides accurate home pricing, surfaces properties, and supplies hyperlocal information to make agents smarter. Originally founded to help renters in New York, the company shifted toward sales and now targets real estate agents as primary users by offering its software free and monetizing via commissions on completed sales and rentals. Compass says it grew revenues ten-fold in the last year and is handling about $1 billion in listings. The company plans to use new funding to expand into more U.S. cities—starting with Boston and adding nine more markets including Los Angeles, Chicago, and Seattle over the next 12 months—and to pursue acquisitions to accelerate local rollouts. Compass also sees potential to license its technology to other firms for tens of millions of dollars, though it has not actively pursued that revenue stream.

Total raised

$1.0B

Funding rounds

6

Latest round

Series G

Latest activity

Jul 2019