Real estate technology platform Compass has closed a $450m investment from SoftBank Vision Fund, making it the largest US PropTech investment.
Compass is an end-to-end platform that helps to simplify the buying, renting and selling workflow, through its online database of properties. Founded in 2012, the company helps real estate agents to increase commissions by around 25 per cent, and help clients to sell homes quicker and at higher prices.
Over the past 24 months the company has grown its agent population by 500 per cent.
With this equity the company will look to expand its services to every major US city, as well as to further invest into its technology platform.
Compass founder and executive chairman Ori Allon said, “With the support of the SoftBank Vision Fund, we will be able to move quickly to execute our ‘Compass Everywhere’ vision, partnering with top agents and their clients in every major U.S. city. Just last week, we launched in Chicago with the number one agent team in the State of Illinois, and we are continuing to gain momentum with top agents everywhere.”
SoftBank’s investment comes just a month after the company closed its Series E round on $100m. Investors to the round included Fidelity Investments, IVP and Wellington Management, among others. This new capital injection brings the company’s total funding to $775m.
The PropTech sector has not seen as much funding as it did last year with the first three quarters seeing $1.5bn less capital being invested than the same period in 2016. This singe transaction from SoftBank represents more funding than the whole of Q3.
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