Compass becomes real estate's newest billon-dollar startup
Online real estate site receives injection of funding, $1 billion valuation
Move overZillow, Trulia, Realtor.com, and Redfin. There’s a new challenger in the battle for online real estate supremacy, and this one has some newly deep pockets.
According to a report from TechCrunch, Compass is now the real estate’s newest billion-dollar startup company.
Per the TechCrunch report, Compass just concluded a $75 million round of funding, which placed its valuation at more than $1 billion.
So what makes Compass different?
Here’s some more detail on the company from TechCrunch:
The new financing was led by Wellington Management Capital and brings the total capital raised to $210 million. Existing investors IVP, Thrive Capital and Founders Fund also participated in the round.
While there are a number of real estate sites including Zillow and Redfin, Compass aims to set itself apart by focusing on broker listings, for both rental and ownership opportunities. Instead of generating revenue through ads, Compass takes a cut of the transactions and claims it processes $7 billion annually.
Compass currently operates in a handful of large markets, including New York City; Washington, D.C.; Miami, Boston and Cambridge, Massachusetts; The Hamptons; Los Angeles; Santa Barbara and Montecito, California; and Aspen, Colorado.
The company said it plans to use this latest round of funding to expand.
Again from TechCrunch:
“We are going to expand into new markets and continue developing transformative technologies, unmatched agent support and marketing resources to our agents and clients across the country,” founder and executive chairman Ori Allon tells TechCrunch.