Startup is now valued at $4.4B
Compass has raised $400 million in a Series F round at an astonishing $4.4 billion valuation. The real estate brokerage has now raised $1.2 billion to date.
Investors: The round was led by SoftBank’s Vision Fund and Qatar Investment Authority. Other participants included Wellington, IVP, and Fidelity. CEO Rob Reffkin announced the news in an interview with CNBC.
Where’s the tech… With unlimited resources, Compass has poached many brokers from competitors to accelerate growth. Simply incentivizing brokers to join by offering nice signing bonuses and higher commission splits is not disruptive. Consolidation is a nice strategy, but not a transformational one.
Some perspective: Realogy, which owns brokerages such as Coldwell Banker, the Corcoran Group, and Sotheby’s International Realty, has a market cap of $2.51 billion.