Compass has raised a $370 million in a Series G round at a $6.4 billion valuation. The real estate brokerage has now raised more than $1.5 billion since its launch in 2012, according to Bloomberg.
- Investors in this round include: Canada Pension Plan Investment Board (CPPIB), Dragoneer Investment Group, and the SoftBank Vision Fund.
- Tech is questionable… 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.
- Worth Noting: Compass continues to focus on growth instead of profits. The company’s COO Maelle Gavet said in an interview earlier this year, “We’re not yet at a stage where I have a very clear monetization strategy because we haven’t really talked about it.” (Bloomberg+WSJ)