| Real estate technology and brokerage Compass will receive an investment of $450 million from SoftBank’s Vision Fund, the largest real estate technology investment in U.S. history.
This investment will bring the total capital raised to $775 million. Compass will use the funds to expand to every major U.S. city and increase its investment in technology to further support Compass agents and their clients.
Compass is building what it calls “the first modern real estate platform,” which aims to reduce the friction and frustration associated with selling, buying or renting a property by providing real estate agents with a set of tools to increase efficiency and sales volume.
“The combination of technology and our partnership with top real estate agents who do outsized transaction volume will enable us to build the world’s largest real estate technology platform,” Ori Allon, founder and executive chairman of Compass, said in a statement. “With the support of the SoftBank Vision Fund, we will be able to move quickly to execute our ‘Compass Everywhere’ vision, partnering with top agents and their clients in every major U.S. city. Just last week, we launched in Chicago with the number one agent team in the state of Illinois, and we are continuing to gain momentum with top agents everywhere.”
“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 SoftBank’s 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 homebuyers through the entire process, well beyond the initial home search. With disruptive technology and unique data advantages, Compass is well-positioned for future growth in a sector that represents trillions in transaction volume.”
