How Much Did Compass Raise? Funding & Key Investors

Compass has successfully raised significant funding from a diverse group of 28 investors, including notable names like Alumni Ventures and SoftBank Vision Fund. The company offers a comprehensive real estate platform that streamlines the process of buying, renting, and selling properties.

Keep reading to explore the intricacies of Compass's fundraising journey and the investors backing this innovative platform.

What Is Compass?

Compass, founded on October 4, 2012, is a real estate technology company headquartered in New York, New York. The company was established by Michael Weiss, Mike Toltzis, Ori Allon, Robert Reffkin, and Ugo Di Girolamo.

Compass offers an innovative platform that integrates technology with real estate services, streamlining the process of buying, renting, and selling properties. The platform aims to make the search and sell experience intelligent and seamless by pairing top talent with cutting-edge technology.

With a workforce of over 10,001 employees, Compass operates in more than 22 regions across the United States, providing comprehensive real estate solutions to a diverse clientele.

How Much Funding Has Compass Raised?

1. Seed Round
   • Amount Raised: $8M
   • Date: December 2012
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To develop the initial platform and launch the company.
2. Series A
   • Amount Raised: $25M
   • Date: September 2013
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
3. Series B
   • Amount Raised: $40M
   • Date: July 2014
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations and enter new markets.
4. Series C
   • Amount Raised: $60M
   • Date: September 2015
   • Lead Investors: IVP
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To further expand market presence and invest in technology.
5. Series D
   • Amount Raised: $75M
   • Date: August 2016
   • Lead Investors: Wellington Management
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To enhance the platform and support rapid growth.
6. Series E
   • Amount Raised: $100M
   • Date: November 2017
   • Lead Investors: Fidelity
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate growth and expand technological capabilities.
7. Series E
   • Amount Raised: $400M
   • Date: December 2017
   • Lead Investors: SoftBank Vision Fund
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To strengthen market position and leverage big data and AI.
8. Secondary Market
   • Amount Raised: $50M
   • Date: December 2017
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To provide liquidity to early investors and employees.
9. Series F
   • Amount Raised: $400M
   • Date: September 2018
   • Lead Investors: Qatar Investment Authority, SoftBank Vision Fund
   • Valuation at Round: $4.4B
   • Motivation Behind the Round: To continue disrupting the real estate industry with technology.
10. Series G
    • Amount Raised: $370M
    • Date: July 2019
    • Lead Investors: SoftBank Vision Fund
    • Valuation at Round: $6.4B
    • Motivation Behind the Round: To support growth and expansion, and prepare for an IPO.

Total Amount Raised: $1.528B. Current Valuation: $6.4B.

Key Investors

• Qatar Investment Authority
  • Details: The Qatar Investment Authority (QIA) is the sovereign wealth fund of the State of Qatar, established to manage the country's excess oil and gas revenues. It invests in a wide range of asset classes globally.
  • Investment Focus Areas: Real estate, technology, infrastructure.
  • Notable Investments: Volkswagen, Barclays, Harrods.
• SoftBank Vision Fund
  • Details: Managed by SoftBank Group, the SoftBank Vision Fund is one of the largest venture capital funds in the world, focusing on technology companies. It aims to drive the next stage of the Information Revolution.
  • Investment Focus Areas: AI, robotics, IoT.
  • Notable Investments: Uber, WeWork, ARM Holdings.
• Fidelity
  • Details: Fidelity is a multinational financial services corporation that provides investment management, retirement planning, portfolio guidance, and brokerage services. It is one of the largest asset managers in the world.
  • Investment Focus Areas: Technology, healthcare, financial services.
  • Notable Investments: Tesla, Amazon, Alphabet.
• Wellington Management
  • Details: Wellington Management is a private, independent investment management firm that offers a range of investment solutions. It manages over $1 trillion in client assets.
  • Investment Focus Areas: Technology, healthcare, financial services.
  • Notable Investments: Airbnb, SpaceX, Robinhood.
• IVP (Institutional Venture Partners)
  • Details: IVP is a venture capital and growth equity firm that invests in later-stage companies. It has a long history of backing successful technology companies.
  • Investment Focus Areas: Later-stage technology companies.
  • Notable Investments: Twitter, Snapchat, Dropbox.

What's Next for Compass?

Compass stands at the cusp of significant growth opportunities, driven by its innovative use of technology in real estate. With a recent $370 million funding round, the company is poised to expand its geographic footprint and enhance its technology suite. The potential for leveraging big data and AI to disrupt traditional real estate practices is immense, promising a more streamlined and efficient experience for buyers, sellers, and agents alike.

Future fundraising efforts are likely to be bolstered by the company's impressive valuation of $6.4 billion and its plans for an IPO within the next 24 months. However, challenges such as achieving profitability and navigating legal hurdles from competitors like Zillow and Realogy remain. As Compass continues to grow, maintaining its competitive edge and managing operational complexities will be crucial for sustained success.

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