Terrible deal for the brokers
An agent who invests $20,000 out of $100,000 in commissions would receive $26,000 in stock options, according to TRD. If agreed upon, the agent is only eligible to collect the shares if they are still with the brokerage in 2020.
Worth Noting: Compass raised $400 million in a Series F round last month at an astonishing $4.4 billion valuation. The round was led by SoftBank’s Vision Fund and Qatar Investment Authority.
Don’t drink the Kool-Aid: Even if Compass continues its artificial growth, the startup is clearly overvalued. 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. Redfin has a market cap of $1.4 billion, while RE/MAX is worth $686 million.