Less than a month after raising $100 million led by Fidelity, real-estate startup Compass is striking while the iron is hot. The company has now picked up an even bigger investment of $450 million, this time from the SoftBank Vision Fund, plus another $50M in secondary deals, to fill out a vision of its own: taking its real estate rental and sales platform global.
New York-based Compass is now valued at $2.2 billion post-money, up from $1.8 billion just four weeks ago, with $775 million raised to date.
The massive round essentially overlapping with the previous round — Allon was closing the SoftBank deal in Japan on the same day that the Fidelity investment was getting announced — is not the first notable financial milestone for the startup.
Compass set the pace on this front with its debut back in 2012, when it was called Urban Compass and announced funding of $8 million from an elite group of backers, at the time one of the largest-ever seed rounds for a startup (all things are relative: $8 million seems almost quaint now).
Ori Allon, the co-founder and chairman of Compass, said in an interview that the plan is not only to keep growing in the US from its current footprint of 11 cities — that was one of the the stated purposes for the last $100 million in funding — but now to turn that strategy to a wider, global stage.
“We realised that to hit the goal of where we want to be in the next two to three years — Compass everywhere, in every major city worldwide — we needed another partner, and that is the vision Softbank is aligned with,” Allon said in an interview.
The Softbank Vision Fund is the tech and investment firm’s massive, nearly $100 billion fund with partners that include the likes of Apple, Qualcomm, Foxconn and a variety of Middle Eastern investors that is taking huge bets on what it believes are or will emerge as the category leaders across a number of areas. Investments include Uber, WeWork, MapBox, Slack and now Compass, among others.